At 2 a.m. (COORDINATED WORLD TIME) The price of Bitcoin (BTC) dropped abruptly by 5.11% to $ 9,256 before recovering again and hovering around the $ 9,500 range. This followed an earlier sudden drop on Thursday after BTC briefly touched $ 10,000 to close the CME futures gap.
Weekly price chart for the crypto market. Source: Coin360
CoinMarketCap data shows this Earlier in the day, the price rose to $ 9,939, and the subsequent consolidation of higher lows and highs convinced some traders to continue working to reach $ 10,000 and more.
1-hour chart of the BTC USDT pair. Source: TradingView
After rising to $ 9,939, traders watched whether $ 9,650 would serve as support. The break below the pennant trend line and 20-MA lowered the price below a high-volume node in the visible area of the volume profile.
BitMEX XBTUSD remaining stock. Source: Skew.com
Skew data shows the decrease to $ 9,256, with $ 28 million settled in large BitMEX positions. As explained in a recent analysis, After rising more than 20% since May 11, Bitcoin’s price was expected to retest past resistance levels to see if it actually broke above the support.
The 1 hour chart suggests a consolidation period of $ 9,200 to $ 9,300. At the time of this issue, the RSI in the neutral zone (50) is flat and the MACD histogram remains negative. The Chaikin cash flow oscillator also remains below 0 and the price continues to set lower highs.
Climbers will find Bitcoin’s price on the 30-minute chart is already in the midst of an oversold recovery, but The sustained buying volume is the indicator of the best signal.
Despite the $ 500 correction, Bitcoin’s price remains above the rising trendline from the recent low of $ 8,200. The day before and during the halving, the price fell on this trendline, and today’s withdrawal to $ 9,256 took advantage of it again.
If the price holds above $ 9,300 and breaks above 20 MA again on the hourly chart, the bullish mood is ready to attempt a retreat above $ 9,600..
4-hour chart of the BTC USDT pair. Source: TradingView
On the 4 hour chart, If Bitcoin’s price falls below the rising trend line and finds no support at $ 9,200, it is likely to drop to $ 100 at $ 9,000.
The VPVR also shows a high volume node at $ 8,894 that is slightly below 100 MAYes, if the price drops below USD 9,000, traders will likely try to open positions at that level.
The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every investment and every trade step involves risks. You have to do your own research when making a decision.
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