- Bitcoin (BTC) locked in a tight range amid market uncertainty.
- S&P 500 rally may lend support to Bitcoin bulls.
Bitcoin (BTC) is creeping towards $9,300 on Monday, however, all previous attempts to settle above this area proved to be futile. Bitcoin has stayed mostly unchanged both on a day-to-day basis and since the beginning of Monday, while its market dominance dropped to 62.2%.
Meanwhile, the future of Bitcoin remains uncertain at this stage. According to the poll carried out by a popular crypto trader Josh Rager, Bitcoin is nowhere near the bottom and the sell-off may continue towards at least $8,500 before the growth is resumed. Over 62% of the 2,134 respondents are in the bear’s camp, while only 38.8% believe that Bitcoin has already bottomed at $9,000.
A lack of upside momentum supports the bearish view, however, there are some factors that may support BTC and even cause a strong rally.
First, Bitcoin’s correlation to S&P 500 has been growing recently, which means that the further positive momentum on the US stock market may be supportive of the first digital asset.
Second, looming fiscal stimulus may remind investors about their inflationary concerns. Considering that Bitcoin is often regarded as a hedge against inflation, new monetary injections may also attract new buyers to BTC.
Third, the nascent altseason may eventually awaken Bitcoin bulls and push the price towards $10,000. Once this technical barrier is broken, the upside momentum will start snowballing.
BTC/USD: technical picture
On the intraday chart, BTC/USD is supported by a combination of 1-hour SMA50, SMA100 and SMA200 at $9,250. If this area is broken, the sell-off will continue towards $9,200 and $9,150. The ultimate short-term support is created by a psychological $9,000. On the upside, we will need to see a sustainable move above Sunday’s high at $9,345 for the upside to gain traction with the next focus on $9,400.