- BTC/USD is trading at $9,200 after correcting lower 2.5% on the day.
- If the support at $9,200 is breached, Bitcoin price could tumble to $8,800.
Bitcoin bleeds profusely on Tuesday in the second devastating selloff in July further killing investors’ hopes of seeing it recover towards $14,000. In fact, the drop towards $9,000 contradicts the prediction by the CEO of Galaxy Digital Mike Novogratz who said that BTC/USD was going to consolidate between $10,000 and $14,000 before the next rally.
The entire market was squeezed by the selling pressure leading to a $10 billion from the total market capitalization. From $260 billion posted at the close of the session on Tuesday to $250 at press time. Bitcoin’s market capitalization also thinned extensively from $168 billion to $163 billion in the same period.
Meanwhile, BTC/USD is trading at $9,200 after correcting lower 2.5% according to the intraday charts. The prevailing trend is strongly bearish with the next possible support at $9,000. Looking at the 4-h chart, the path of least resistance is to the south.
BTC/USD 4-h chart
The Moving Average Convergence Divergence (MACD) is exploring lower levels within the negative territory. Besides, the widening divergence signals increasing bear influence. At the same time, the Relative Strength Index (RSI) is stuck in the oversold.
If the support at $9,200 is breached, the Bitcoin price could tumble to the next target at $8,800. Further breakdown is likely to find support at $8,500.
On the upside, the price is trading below the 100 Simple Moving Average (SMA), indicating the presence of selling pressure. If Bitcoin bulls manage to keep the price above $9,200, a continued correction towards $10,000 will encounter resistance at $9,500 and $9,800.
Bitcoin Key Technical Picture
Key Support Areas: $9,000, $8,800 and $8,500.
Critical Hurdles: $9,500, $9,800 and $10,000.
MACD 4-h chart: Increasing divergence suggests bulls are gaining traction.
RSI 4-h chart: Stuck in the oversold – stronger bearish momentum prevails.