BTCUSD forming lower highs; can the selling pressure drag Bitcoin below $9,000 soon

The weak technical indicators combined with the meagre trading volumes for Bitcoin are worrisome. If a sell-off is triggered, it could push BTCUSD much lower.

The selling pressure continues to hold steady in BTCUSD. Every time, Bitcoin makes an attempt higher, the sellers rapidly swing into action. Bitcoin jumped towards $9,500 a few hours back, but it quickly witnessed a fall to $9.3k.

Some analysts feel the king of crypto could soon trickle down to $8,000. Whatever be the case, Bitcoin is in a harsh territory, and even small jumps are getting increasingly difficult to sustain. 

BTCUSD forming lower highs

Bitcoin’s movements were mostly range-bound in the past couple of weeks, except the abrupt jumps and declines. However, the highs formed by BTCUSD are getting lower. It is a strong Bearish indicator.

At the time off writing this article, BTCUSD hovered around $9420. The traded volumes for Bitcoin have remained pretty low since the past few weeks. It indicates that investors are shying away from buying Bitcoins.

 

Technical analysis of BTCUSD and the path ahead

BTCUSD Chart

The four-hour timeframe for BTCUSD shows the price action and the range-bound movement. The two trendlines can be guiding paths for short term trading strategies.

Bitcoin making a breakout below the trendline could signal further decline, whereas a breakout above the trendline could bring a chance to cross the $9.5k mark. However, as of now, BTCUSD does not appear to be making a big move anytime soon.

Key levels to watch out for are:

  • Support levels: $9,350 and $9,100
  • Resistance levels: $9,500 and $9,850

One crucial observation from the four-hour chart for BTCUSD is the Moving Average lines. The 50-period SMA might soon cross below the 200-period SMA. It is known as a ‘Death Cross‘ pattern, which is a strong bearish indicator.

However, despite the weak technicals, Bitcoin could likely make a substantial upward move if the US Federal Reserve comes up with a relief package for fighting the Coronavirus crisis. 

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