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Bitcoin price is recovering from the $ 8,800 support, showing traders continue to buy with every drop

June 28, 2020

In the last hour, the price of Bitcoin (BTC) fell below $ 9,000 to a daily low of $ 8,813. Since June 24, the price of Bitcoin has lost momentum as it is below 20 MA (20-day moving average) and today’s drop to $ 8,813 coincided with an increase in sales volume.

Weekly market price chart for cryptocurrencies

Weekly market price chart for cryptocurrencies. Source: Coin360

Bitcoin price is recovering from the $ 8,800 support, showing traders continue to buy with every dropBitcoin price is recovering from the $ 8,800 support, showing traders continue to buy with every drop

As explained in the previous analysis, Shoppers were keen to buy below $ 9,000 each time it dropped, and today’s drop brought the price closer to the edge of a major high-volume VPVR node at $ 8,800.

BTC / USDT daily chart

BTC / USDT daily chart. Source: TradingView

If the bears manage to bring the price below this level, the price of Bitcoin could drop from $ 8,325 to 200 MA (200-day moving average).but if you don’t find support in this moving average, The price could fall in the range of $ 7,400 to $ 6,800.

Weekend corrections are made with a low trading volume

Investors are used to seeing slight withdrawals on weekends as trading volume tends to decrease. It is also possible for larger traders to watch from the band after the USD 1.06 billion BTC futures and options expire and the next close on Tuesday.

According to Cointelegraph employee Marcel Pechman, the market is in a somewhat neutral zone after the massive expiry of the options on Friday. In private comments, Pechman said:

“The expiration of the options had no significant impact as most of the purchase options indicated $ 10,000 or more. This event eliminated 67% of the previous $ 1.7 billion positions open, including 70% of the Chicago Mercantile Exchange (CME) and 50% of Deribit.

The expiration of futures had a slightly different story when CME traders turned around and were reopened for a longer term. Most futures positions were for June 25, leaving only $ 38 million left over Friday’s expiration. The open shares of Bitmex and Deribit remained unchanged after the expiry, indicating that most of the positions were renewed, but at OKEx half of the futures contracts expired at around USD 860 million.

Overall, this indicates that traders are unwilling to open new positions before the weekend. The negative development of the financial markets on Friday could have frightened Bitcoin investors as the correlation between the SP 500 and the BTC remains relatively high. “

Bitcoin daily price chart

Bitcoin daily price chart. Source: Coin360

When the Bitcoin price corrected, various altcoins also suffered huge losses. Ether (ETH) fell 4%, Chainlink (LINK) lost 6.42% and the DeFi Compund (COMP) token fell 13.17%.

According to CoinMarketCap, the total capitalization of the cryptocurrency market is now $ 255.7 billion and Bitcoin’s dominance rate is 65.1%.

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