Bitcoin has seen a decent rally over the past two days or so. After slumping below $9,000 over the weekend in a bearish move that made the bulls wary, BTC rallied past $9,300 on July 7 for the first time in approximately 10 days. However, this did not last long as the benchmark crypto dipped to around $9,233 at the time of publication.
Following BTC’s rejection from $9.3K, analyst FilbFilb noted that the coin’s 50-day moving average (DMA) is now the current test for the bitcoin price – although it has given way two times already in the past. Speaking on his Telegram trading channel, he stated:
“Bitcoin Failed to reclaim that 9300 level last night. The 50 DMA is again the test for Bitcoin, sat at ‘support’ on the 9250 level but the previous 2x times this failed in the exact same situation. SPX futures were down those times too as they are today, so given that I’ve hedged my longs for now.”
This simply implies that those hoping for sky-high prices in the near future might be in for a rude awakening – at least for now. And according to another analyst, BTC must reclaim $9,600 or risk a drawdown.
The Bulls Must Reclaim $9,600, Or $8,600 Comes Next
Danger is lurking in the bitcoin market. Analyst TheCryptoCactus noted that a sell-off to the $8.6K level could be around the corner if the bulls don’t push the price to $9,600 and flip it to support.
To be precise, the analyst posited that this needs to happen before the end of the week. “If bulls lack momentum now then $8,600 is next,” the analyst pointed out while referring to the chart below.
Bitcoin has risen a stellar 27% this year, outperforming gold and equity markets. Yet, over the past couple of weeks, BTC’s volatility has dropped to historic lows. Bloomberg analysts have even described the flagship crypto as a “resting bull” that is on the verge of a massive breakout.
For bitcoin to maintain its luster, it must first tackle the stubborn resistance at $9,300 as it advances higher to $9,600. Failing to do so could see BTC plummet towards $8,600.