Bitcoin (BTC/USD) inside a consolidation phase

Bitcoin (BTC/USD) inside a consolidation phase

Although Labor Day was commemorated in several parts of the world, Bitcoin once again suffered selling pressure below the 200-hour moving average, which is allowing the fall to extend to the Fibonacci level of 50% in 8640, where we project that there is a strong buying demand that could push the cryptocurrency to reach new highs.

On the wires, the venture-capital of billionaire Peter Thiel is creating a startup that helps investors to bet on Bitcoin because he firmly believes that the popularity of this cryptocurrency will grow more and more. In terms of global expansion, the press is reporting that a Bitcoin store has been opened in Croatia, which will allow this and other virtual currencies to be sold.

The Parabolic SAR continues to signal more weakness, although we still do not see a bearish cross of moving averages on the H1 chart. The price action could be suggesting that we are ahead of a fall that may extend below the lows of April 26. Meanwhile, the RSI indicator is close to the oversold area.

What do we expect?

According to our forecasts in the short-term, Bitcoin aims to make another bearish extension towards the Fibonacci level of 65% in 8349. There we could see a rebound that could lead the virtual currency to try new highs, with the first objective set in the highs of April 25 in 9609. If a break occurs at such levels, the BTC/USD pair would extend above the psychological barrier of the 10,000.

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