Bitcoin suffered a devastating fall after it previously failed to surpass the resistance at $9,200 level. As a confirmation of the bearish reversal painted on May 20, 13:30 hours UTC, when bitcoin initially failed at the $9,800 resistance level, the coin continued further downtrend until prices printed $8,600 on May 25, 01:30 hours UTC.
However, since the price touched $8,632 on May 25, bitcoin appeared to have made a swing low, a position below which prices may not fall in the short term.
Trading sideways for a couple of days, prices remained under the resistance level at $9,000 amid a massive sell wall seen in major exchanges. It would appear that bitcoin needs to satisfy the sellers before making further gains beyond $9,300.
However, selling pressure seems to have suppressed a lot more than expected as BTC finds support at the $9,053 mark. This position represents the 61.8% Fibonacci retracement level of the bearish turn made at $9,013 on May 23 at 09:30 hours UTC.
At the time of this analysis, bitcoin was changing hands at $9,169, having bounced off a support level at the $9,053 mark twice within the last 24 hours. BTC’s market capitalization stands $158.59 billion. 24-hour exchange volume appropriates at $32.7 billion.
BTC Technical Analysis
Bitcoin took a bullish turn on May 26, 21:30 hours UTC. The formation of a bullish inverted hammer confirmed that the bulls have taken over market sentiments on May 27, 09:30 hours UTC. The buyers gained a little more advantage when prices found support at the 78.6% Fibonacci retracement level ($9,166).
Following the surge towards $9,200, buying pressure was intercepted at the 1.0 Fib level where the price was staggering at $9,300.
Sellers took over as the bears dragged prices towards the support at 0.78 fib level ($9,166). Interception of the bulls at this level proved abortive as prices failed at that support level and traveled further downwards towards $9,050.
In the unlikely event that buyers take another turn, prices may go towards the 1.0 fib level ($9,333) where a major resistance lies. Further upwards will see prices touching $9,500 in the short term.
However, if the sellers continue at this present pace, prices may end up trading horizontally at the $9,000 mark where a major support level has been established.