Bitcoin cryptocurrency rate (BTC) has corrected after a recent fall, but could not gain above the resistance zone of $ 9,200. Therefore, BTC/USD should become cheaper by $ 8,650 by July 7th.
Key Points
- BTC price is trading in the range above $ 9,000.
- A bearish trend line has formed on the hourly chart with resistance at $ 9,170.
- The exchange rate will drop if buyers do not break the $ 9,400 barrier in the next three sessions.
On the night of June 27-28, the value of Bitcoin bottomed out at $ 8,813 (Bitstamp data), then the BTC correction began. The bulls broke through the barriers at $ 9,000 and $ 9,100. However, at the level of $ 9,200 they began to actively sell the coin, so the BTC rate fell again. Now the coin price is fluctuating by 23.6% Fib recorded during the pump from $ 8,813 to $ 9,226.
The nearest support is located at around $ 9,000, which coincides with 50% Fib. In case of breaking through this barrier, BTC/USD will drop to $ 8,800 and then to $ 8,650. The downward trend is not characterized by high dynamics, as a result, strong impulses are unlikely. The upward movement will meet resistance at $ 9,200 and $ 9,400. If the last barrier is not overcome, then a bearish trend will arise.
Bitcoin Market Expects Full-scale Pump or Dump
BTC has fallen into a trap: over the past seven weeks, the exchange rate has ranged from $ 8,500 to $ 10,200. Given the duration of the consolidation, it can be assumed that a powerful pump or dump is coming on the market. According to analysts at Bitcoin Bravado, a low level of volatility signals a breakthrough. In this case, the Bollinger indicator coincides with the February value. Therefore, many traders predict a drop in the rate of the coin by at least 50%.
The dump hypothesis is confirmed by the fact that institutional investors start selling Bitcoin. In particular, CME exchange clients are shortening 2038 BTC futures contracts. The tendency to increase the number of short positions on the CME was observed in February 2020. These data indicate that the sale of cryptocurrency will begin in the next two weeks.
Technical indicators:
- 4 hours MACD is in the bullish trend zone.
- 4 hours RSI is above 40 (in the neutral area).
- The main support level is $ 9,000.
- The main resistance level is $ 9,400.
- The nearest pivot points are $ 8,879 and $ 9,249.
Source: en.bit.news
