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2 March 2024
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Bitcoin Market Update: BTC/USD may retest $9,000 amid worsened sentiments on the global markets

  • Bitcoin resumed the decline amid the sell-off on the stock markets.
  • The downside pressure may increase into the US opening.

Bitcoin is changing hands at $9,190, mostly unchanged both on a day-to-day basis and since the beginning of Tuesday. The first digital coin has been locked in a tight range for weeks with rare attempts to break free in either direction. At the time of writing, Bitcoin’s market value is registered at $169.3%, while its market share recovered to 62.6% from the recent low of 62.2%. 

Bitcoin’s growing correlation with the stock markets makes it vulnerable to further losses. Asian stocks dropped on Tuesday amid concerns about the global economic recovery and escalation of China-American tensions. Both the S&P 500 Index and Nasdaq futures briefly touched new highs and slipped into a red zone. Bitcoin may follow the lead and slip under $9,000 if the sentiments do not improve by the time of the US opening. 

Also, traders are waiting for earnings reports this week that will provide more insights into the state of corporate America and the economy as a whole. 

“There is a risk that the divergence between a gloomy economic outlook and unexpectedly strong returns from equity markets is reconciled by some pull-back in asset prices rather than a surge in economic optimism. There is a case for caution,” Chris Iggo, chief investment officer for core investments at AXA Investment Managers, said as cited by Bloomberg.

BTC/USD technical picture

On the intraday charts, BTC/USD struggles to stay inside the recent consolidation range limited by $9,200 on the downside and $9,400 on the upside. The coin touched the intraday low $9,145 and rebounded to $9,180. If it fails to return above $9,200, the selling pressure may increase with the next focus on $9,000. This barrier is strong support and has been attracting buyers during the recent sell-off periods. If it is broken, weekly SMA50 at $8,700 will come into view.

On the upside,  a sustainable move above $9,345 (July 12 high) and $9,400 is needed for the upside to gain traction. Once this happens, the upside momentum may increase and push the price towards $9,500 followed by $9,800.

BTX/USD 1-hour chart

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