Bitcoin price bounces off $8800 support shows that traders continue to buy at every drop

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

Loans in cryptosystems: The ultimate application?
Weekly chart of prices in the crypto market

As discussed in the previous analysis, buyers have been interested in buying at every drop below $9,000 and today’s drop brought the price close to the edge of a key high-volume VPVR node at $8,800.

If bearishers manage to bring the price below this level, the price of Bitcoin could fall to the 200-MA (200-day moving average) of $8,325, but if it doesn’t find support in this moving average, the price could fall to the $7,400 – $6,800 area.

12 Lessons in Winning and Losing $12 Million in Crypt Currencies

Weekend corrections occur with a small volume of trade
Investors are used to slight setbacks over the weekends, as trading volume tends to decrease. It is also possible that larger traders will be watching from the sidelines, following the expiration of $1.06 billion in BTC futures and options and the next monthly close on Tuesday.

Bitcoin falls 20% as a result of „stimulus-addicted“ stocks
According to Cointelegraph contributor Marcel Pechman, the market is in a bit of a neutral zone after the massive expiration of options on Friday. In private comments, Pechman said:

„The expiration of the options had no significant impact, as most of the call options pointed to $10,000 or more. This event eliminated 67% of the $1.7 billion in open interest the previous day, including 70% on the Chicago Mercantile Exchange (CME) and 50% on Deribit.

The futures expiration had a slightly different history as CME traders turned around, reopened to a longer expiration, most futures positions were for June 25th, leaving only $38 million for Friday’s expiration. Open interest rates at Bitmex and Deribit also remained unchanged after the expiration, indicating that most positions were rolled over, but at OKEx half of the futures contracts of about $860 million expired.

Overall, this indicates that traders are not willing to open new positions before the weekend. Friday’s negative financial market performance may have scared off Bitcoin investors, as the correlation between the S&P 500 and Immediate Edge remains relatively high.

As the price of Bitcoin was corrected, several altcoins also suffered large losses. Ether (ETH) fell by 4%, Chainlink (LINK) lost 6.42% and the DeFi Compund (COMP) token fell by 13.17%.

Investors fear a massive sale of Ethereum after PlusToken transferred 789,000 ETH
According to CoinMarketCap, the total capitalization of the crypto market is now $255.7 billion and the Bitcoin domain rate is 65.1%.

This entry was posted in Analyst. Bookmark the permalink.

Comments are closed.