During the course of the week, the price of Bitcoin has dipped below $9000 twice, but there has been no cause for alarm to the traders, who keep buying. Within the last 24 hours, BTC price dropped to a low of $8813, which was the daily low.
BTC price has been losing momentum since June 24 while stuck below the 20-MA. The price drop that occurred today coincided with an increase in sell volume. Buyers have shown a huge interest in buying every dip below $9000, with the drop bringing the price closer to the edge of a key high volume VPVR node at $8800.
If the price of the crypto is pushed further down by the bears in the market, it could go down to the 200-MA at $8325. However, if there is no support at this level, the price could dip further to the $7400 to $6800 zone.
Historically, the weekend trading volumes tend to be lower, and investors are used to mild pullbacks. This could be one of the reasons for the dip in BTC price below $9000, a price the crypto has maintained for several weeks. In addition, larger size traders could be surveying from the sidelines after the expiry of$1.06 billion BTC futures and options. Also, there is an upcoming monthly close on Tuesday, which could affect the sell volumes, and consequently the price.
A contributor at Cointelegraph, Marcel Pechman, made comments that were viewed as neutral after the massive options expiry on Friday. He claimed that the expiry of the options had no meaningful impact as most of the call options were aimed at $10000 or higher. The effects of the options expiry were the wiping out of 67% of Thursday’s $1.7 billion in open interest.
Pechman went further to explain that the futures expiry had a different story as CME traders reopened at a longer maturing. Most of the futures were positioned on June 25, hence only $38 million were left for the Friday expiry.
He, therefore, concluded that traders are not willing to open new positions closer to the weekend. The negative performance of Friday’s financial markets might have negatively affected Bitcoin investors since there is a relatively high correlation between S&P 500 and BTC.
After the BTC dip below $9000, it corrected, but altcoins have not had the same positive results, as most of them suffered huge losses. For instance, Eth dipped by 4%, Chainlink (LINK) lost 6.42%, and DeFi token Compound (COMP) dropped by 13.17%. BTC continues to dominate the market, as some altcoins struggle to gain any market attention and increase in price.
Image courtesy of Pixabay
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