Bitcoin price dropped below $9,000 for the second time this week but traders continue to buy on each dip. Within the last hour Bitcoin (BTC) price dropped below
$9,000 to a daily low at $8,813. Since June 24 Bitcoin price has been
losing momentum while pinned below the 20-MA and today’s drop to $8,813
coincided with a surge in sell volume.
Crypto market weekly price chart. Source: Coin360
As discussed in previous analysis,
buyers have been keen to purchase every dip below $9,000 and today’s
drop brought the price near the edge of a key high volume VPVR node at
$8,800.
BTC USDT daily chart. Source: TradingView
If
bears succeed in pushing the price below this level Bitcoin price could
drop to the 200-MA at $8,325 but failure to find support at this moving
average could see the price sink lower to the $7,400 to $6,800 zone.
Weekend corrections occur on thin trading volume
Investors
are accustomed to mild pullbacks over weekends as trading volume tends
to thin. It's also possible that larger size traders are watching from
the sidelines after yesterday’s $1.06 billion BTC futures and options expiry and the approaching monthly close next Tuesday.
According to Cointelegraph contributor Marcel Pechman the market is in a bit of a neutral zone after Friday’s massive options expiry. In private comments Pechman said:
“The
options expiry did not have a meaningful impact as most of the call
options were aimed at $10K or higher. This event wiped out 67% of the
previous day's $1.7 billion in open interest, including 70% of the
Chicago Mercantile Exchange (CME) and 50% at Deribit.
The futures
expiry had a slightly different story as CME traders rolled over -
reopened at a longer maturing - most of the futures positions on June
25, leaving a mere $38 million for Friday's expiry. Bitmex and Deribit
open interest also remained unchanged after expiry, indicating most
positions were rolled over but at OKEx half of the $860 million futures
contracts open interest matured.
Overall this indicates traders
are unwilling to open new positions ahead of the weekend. Friday’s
financial markets' negative performance might have spooked Bitcoin
investors as the correlation between the S&P 500 and BTC remains
relatively high.”
Bitcoin daily price chart. Source: Coin360
As Bitcoin price corrected a number of altcoins also suffered heavy losses. Ether (ETH) dropped by 4%, Chainlink (LINK) lost 6.42% and DeFi token Compound (COMP) fell by 13.17%.
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $255.7 billion and Bitcoin’s dominance rate is 65.1%.
source link : https://cointelegraph.com/news/bitcoin-price-bounce-at-88k-support-shows-traders-keep-buying-the-dip
