- Bitcoin lost its traction after finding resistance near 20-day SMA on Saturday.
- RSI on the daily chart continues to edge lower below the 50 mark.
Bitcoin (BTC/USD) struggled to climb above the 20-day SMA on Saturday and extended its slide after breaking below the key Fibonacci support near $9,100. As of writing, Bitcoin was trading at $8,740, erasing nearly 2% on a daily basis.
Technical outlook
The RSI indicator on the daily chart failed to advance beyond the 50 handle on Friday and started to edge lower to show that the selling pressure on the pair is building up. Additionally, the 20-day SMA and the 50-day SMA, which made a bearish cross on Thursday, both float above the current price to confirm the near-term bearish outlook.
The initial support for the pair is located at $8,700 (200-day SMA/Fibonacci 50% retracement of January-mid-February rally). A weekly close below that level could attract more sellers and drag the pair lower toward $8,400 (March 1 low/100-day SMA).
On the upside, $9,100-$9,200 area (Fibonacci 38.2% retracement of the same rally/20-day SMA/Friday high/Saturday high) could be seen as the first resistance ahead of $9,300 (50-day SMA) and $9,500 (Fibonacci 23.6% retracement of the same rally).
BTC/USD daily chart
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