Bitcoin shot up to more than 3-month highs in Asia, but failed to keep gains and reverted back to $9.300 in Europe, marking a failure on the part of the bulls to absorb the selling pressure around the resistance of the November 4 high of $9,600.
The digital currency is now producing an inverted bearish hammer on the D1 chart – a sign the upward momentum has weakened. Thus, sellers could make a comeback, pressing support at $9,195 (January 19 high).
A close below that level could lead some bulls to exit the market. This may send the price towards $8,850. That level is currently housing the support of the rising trendline sloping upwards from the January 3 low.
If the support at $9,195 holds, a bounce back to $9,600 may be seen with a closer higher creating room for a quick move to $10,000.
At the time of writing, bitcoin is priced at $9,230 on Coinbase.