Yesterday, Bitcoin resumed a downward move after the bulls were overwhelmed by the bears’ selling pressure. The king coin has been facing selling pressure below $9,000 and $9,200 resistances.
On the 4-hour chart, the bulls made three unsuccessful attempts to push BTC above $9,000 resistance. During the price spike on April 29, the bullish runs reached a high of $9,400. Buyers were unable to push the price upward because of the selling pressure at $9,200. They were unrelenting as the price was pushed above $9,000 resistance on May 1 and 3 but were repelled at the $9,000 resistance.
Nonetheless, the current downtrend was as a result of the bulls’ failure to sustain the uptrend above $9,200 resistance. The market has fallen to $8,600 low, and the bears are attempting to break below $8,600 support. Meanwhile, BTC has also fallen to level 46 of the Relative Strength Index. This indicates that the coin is in the downtrend zone and it is likely to fall.
Bitcoin in downward move; bulls fail to propel price above $9,200
On the daily chart, the market is said to have reached the overbought region, according to the Relative Strength Index. Sellers emerged in the overbought region to push prices downward. BTC is currently declining as the price is testing the support at $8,600. On the downside, if the bears succeed in breaking the current support, the market will drop to $8,400.
The bulls must have to defend the $8,400 support to avoid further depreciation of the coin. This is the critical support where a breakdown will lead to a downward move to the $8,000 support. Meanwhile, BTC has earlier risen to level 74 of the Relative Strength Index. This indicates that the coin was overbought. This is the reason for the selling pressure as the index has fallen to level 66.
