Bitcoin bounces off support at $8,600 towards the short term goal at $9,000.
BTC/USD is in the hands of the bulls especially with the RSI holding above 70 (overbought region).
Bitcoin price has continued to face increasing selling activity. The weekend session was not different as seller domination continued. BTC/USD extended the bearish leg further below $9,000 to the extent of testing support at $8,600. The largest cryptocurrency is currently trading at $8,780 after a minor recovery from the aforementioned support area.
The prevailing trend in the Asian session on Monday is surprisingly bullish especially with the volatility being high. Other cryptocurrencies are also trying to come out of the weekend dip, for instance, Ethereum is up 1.46% to $202.50 while Ripple is up 0.67% to exchange hands at $0.1937.
The trading action in the near term is likely to remain sideways with a consolidation between $8,700 and $8,800. The RSI is holding onto the level at 70 after upward movements became unsustainable. The main goal among the bulls is to pull the price above $9,000 in order to shift the attention to $10,000.
In the meantime, holding above the short term support at $8,700 is key to the short term movements towards $9,000. Past $9,000, buyers should be ready to deal with the selling pressure at the 50 SMA and the 100 SMA in the hourly range, the trendline resistance, and the hurdle at $9,200.
It’s good to buy if it’s low then.