Bitcoin Price Analysis: BTC/USD clings to modest gains above $9,000
|- BTC/USD loses its momentum after touching key resistance above $9,000.
- Daily RSI continues to stay in overbought area.
Bitcoin (BTC/USD) edged higher on Saturday and gained nearly 2% on a daily basis to close a little below $9,000. Although the pair continued to push higher, it seems to have lost its momentum near the $9,200-9,250 region in Sunday's subdued trading action. As of writing, the pair was up 0.4% on a daily basis at $9,025
Technical outlook
The starting point of the sharp drop that occurred between March 7th and 14th is located in the $9,200-9,250 area, which seems to have formed a strong resistance in the near-term. Above that level, $9,480 (Apr. 30 high) could be the next hurdle before the pair could target $10,000 (psychological level). Meanwhile, the RSI indicator on the daily chart continues to show overbought conditions above 70, suggesting that the pair could make a technical correction before extending its rally.
On the downside, $9,000 (psychological level) is the immediate support ahead of $8,400 (Apr. 30 low, static level). In case the price breaks below these levels, $8,000 (psychological level, 100-day SMA, 200-day SMA) will be the next critical area that could show whether the pair goes into a deeper correction or, once again, turns north.
BTC/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.