The weekly close is once again knocking on Bitcoin’s doors with the King of Crypto currently trading cautiously around the $9,400 support area. Earlier on in the week, BTC dipped hard below $9,300 to a local bottom of around $9,110 – Binance rate.
This drop was due to news of a possible second wave of the Coronavirus outbreak in the United States coupled with news that the Fed will keep interest rates at around 0% – 0.25%.
All bets are on Bitcoin either retesting its $9,300 support or losing it completely.
BTC dropped below this support zone on the 11th of June.
One bearish scenario sees Bitcoin retesting $8,000 or even $7,000.
All Bets are on Bitcoin Retesting or Losing the $9,300 Support Level
When Bitcoin dipped below $9,300 many crypto-traders were confident that it was the beginning of a bear season for BTC. However, Bitcoin rebounded within 24 hours to around $9,560. At the time of writing this, Bitcoin is trading at $9,400 with the daily chart (below) still showing a possible dip to either the 100-day (yellow) or 200-day (green) moving averages. Such a dip would take Bitcoin to a price level of around $8,100.
Additionally, the daily MACD and MFI further point to a bearish week for Bitcoin. Trade volume is also in the red further pleading the case that BTC will break through the $9,300 support zone.
However, one possible lifeline for Bulls is the 50-day moving average (white) that is providing Bitcoin with adequate support and above $9,300. Perhaps, BTC will bounce on this MA before providing a clearer picture of its next move.
Bearish Scenario of Bitcoin Dipping as Far Down as $7,000
Since the Coronavirus crash of mid-March and after halving, Bitcoin has attempted and failed several times to push past $10,000 and claim it as a support zone. It is with the constant rejection at the psychological price level of $10,000 that it can be concluded that Bitcoin has exhausted all its momentum to keep pushing up. What remains is a correction that could take BTC to the 200-Day moving average.
In a recent market update, the team at Crypterium elaborated that the failure to break $10,000 could indicate a lack of interest in Bitcoin further leading to a dip as far down as $7,000.
…we can feel a lack of interest in the asset. In the last few days, the price hasn’t changed more than $200 to $300. And just a month ago, these values were 2–3 times higher.
While we still expect Bitcoin to enter the range of $8,000 – $7,000, the current stagnation indicates such a move will take time. According to our analysis, it may take another 3 to 4 weeks before getting there.
As mentioned in the above analysis of Bitcoin, it might take another 3 to 4 weeks for Bitcoin to complete its move down. Therefore, if the sideways movement above $9,000 is maintained by BTC, altcoins might have a chance to thrive for the rest of June.
As with all Bitcoin analyses, traders and investors are requested to use proper risk management techniques as well as stop losses to protect their trading capital from the volatile crypto markets.