After advancing to its highest level in more than a year near $9100 on Thursday, Bitcoin staged a deep correction and returned to $8000 area to erase all of its weekly gains. However, the BTC/USD pair, once again reversed its direction on Friday and retraced a large portion of its latest fall to close the day more than 3% higher near $8500.
With the trading action turning subdued over the weekend, the pair is fluctuating in a relatively tight range near Friday’s closing level and is waiting for the next catalyst.
Looking at the technical picture, the 23.6% retracement of the May rally near $8150 and the $8000 psychological level seems to have formed a stiff support area. With a decisive break below that level, the slide could extend toward $7500 (Fibo 38.2% retracement). On the other hand, $9100 (May 30 high) now aligns as the initial resistance ahead of the critical psychological mark of $10000.
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