Bitcoin is defending sub-$8,600 area for the third straight day, keeping hopes for a move above $9,000 alive.
Trapped in $8,900-$8,500 range
The cryptocurrency is trapped largely in a $400 range since Tuesday’s US session.
While the upside has been capped around $8,900, dips to %8,500-%8,600 rage have been short-lived.
At the time of writing, the coin is priced at $8,650 across various exchanges. Prices hit lows near $8,550 an hour ago.
While the repeated failure at $8,900 has dented the upside momentum, only a high-volume break below $8,555 would indicate a short-term top has been put in place.
A move through support at $8,555 could bring a deeper correction to $8,200
Traders can expect a big move to the higher side, possibly a convincing break above $8,900, if the RSI violates the descending trendline.
Moreover, the relative ease of how bitcoin jumped from $8,100 to $8,800 on Tuesday indicates that bulls are in charge. Also, the daily chart oscillators aren’t reporting overbought conditions, so it appears that there is still scope for further rally to the $9,100 handle, which is currently housing the 200DMA.