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Bitcoin price analysis: BTC/USD tests waters below critical support $9,000 as Japan wants anonymous coins to be de-listed

  • Bitcoin is under pressure amid a continued regulatory crackdown.
  • Break below psychological support $9,000  will open the way towards $8,000.

Bitcoin has been on the downside track since the beginning of the week as the cryptocurrency market entered a correction phase. The coin is down 3.5% on the day, trading at a critical $9,000 level. BTC market value has reduced to $153.3B from $160B the day before. 

Fundamentally, the cryptocurrency market may be dragged down by the speculations that Japanese financial authorities want cryptocurrency exchanges to de-list anonymous coins. The regulator believes that these coins are easy to use for illegal activities. The negative reaction of Japanese traders may have dragged Bitcoin price down, considering the fact, that BTC/JPY accounts for over 36% of all trades with this cryptocurrency.

Bitcoin technical picture

While a downside correction doesn't look like a welcoming development for Bitcoin bulls, it is a natural thing after the coin's price grew over 30% in April. From the longer-term point of view, BTC/USD is staying in a range limited by strong psychological resistance $10,000 with 200-DMA creating an additional buffer, and by $9,000 - this support level is strengthened by 100-DMA. It means that it won't be easy to break it, though, once it happens, the sell orders located right below this threshold will be triggered. In this case, the sell-off may be extended towards local support at $8,700 and to $8,000 where 50-DMA coincides with $61.8% Fibonacci retracement. 

BTC/USD hourly chart looks uninspiring. The price broke below 200-SMA (hourly chart) at $9,160, which triggered a sell-off towards the above mentioned $9,000 support. 

BTC/USD, the daily chart

BTC/USD, the daily chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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