BTC/USD, the most popular trading pair closed the trading on Tuesday breaking the 11-months daily win. Bitcoin’s price posted losses of 2.87% yesterday after Bitcoin had recorded between 2-5% increase for the last six days before yesterday.
The six-day winning streak elevated BTC from the region above $8,100 to level around $9,480. Experts have connected the surge to the protests in Hong Kong due to the feared control by mainland China which has led to many individuals storing their funds in Bitcoin in addition to the hype surrounding the release of Facebook’s Libra cryptocurrency.
Bitcoin retreated from the highs around $9,480 (on Coinbase) and even failed to find support at $9,300. The losses continued below $9,200 amid the increasing selling pressure. It is clear that failure to break the psychological $9,500 caught the bulls unawares and investors rushed to take their profits.
BTC/USD 4-h chart
In the meantime, BTC/USD changing hands at $9,070 amidst a growing bearish momentum. The drop below the broken support at $9,100 is likely to explore the area at $9,000. Marginally below the current market value the Bollinger Band 4-h lower is offering immediate support. Clearing this level result in declines testing $9,100 support.
Traders need to keep in mind that $8,800 is key support from the weekend trading. Other areas to cushion Bitcoin in case of extended reversal are $8,400, the 100 Simple Moving Average (SMA) 4-h, the two-months-long trendline, $8,000, $7,600 as well as $6,800.
In other news, the founder of Fundstrat Global Advisors, Tom Lee, a renowned Bitcoin bull reckons that Bitcoin has the potential to trend to new highs. Lee was speaking during an interview with CNBC and said that Bitcoin is becoming the reserve currency in the digital space. Lee in his opinion on Bitcoin’s potential said:
“I think bitcoin is easily going to take out its all-time highs.”