In the last hour, the price of Bitcoin (BTC) fell below $ 9,000 to a daily low of $ 8,813. Since June 24, the price of Bitcoin has been losing momentum as it is set below 20-MA (20-day moving average) and today’s drop to $ 8,813 coincided with an increase in sales volume.
Weekly cryptocurrency market price chart. Source: Coin360
As discussed in the previous analysis, Buyers have been interested in buying at each drop below $ 9,000, and today’s drop brought the price closer to the brink of a key high-volume VPVR node at $ 8,800.
BTC / USDT daily chart. Source: TradingView
If the bears manage to bring the price below this level, the price of Bitcoin could drop to 200-MA (200-day moving average) from $ 8,325, but if you can’t find support in this moving average, the price could fall to the $ 7,400 – $ 6,800 area.
Weekend corrections occur with small trading volume
Investors are used to slight pullbacks on the weekends as trading volume tends to decrease. It is also possible that larger traders are watching from the band, after the expiration of $ 1.06 billion in BTC futures and options and the next monthly close on Tuesday.
According to Cointelegraph contributor Marcel Pechman, the market is in a somewhat neutral zone after Friday’s massive options expiration. In private comments, Pechman said:
“The expiration of the options did not have a significant impact, since most of the purchase options pointed to $ 10,000 or more. This event eliminated 67% of the $ 1.7 billion in open interest the day before, including 70% of the Chicago Mercantile Exchange (CME) and 50% in Deribit.
The expiration of futures had a slightly different history as CME traders turned around, reopened to a longer maturity, most futures positions were for June 25, leaving just $ 38 million for the expiration of Friday. Bitmex and Deribit’s open interests also remained unchanged after expiration, indicating that most positions were renewed, but at OKEx half of the futures contracts of about $ 860 million expired.
Overall, this indicates that traders are unwilling to open new positions before the weekend. The negative performance of financial markets on Friday could have scared Bitcoin investors as the correlation between the S&P 500 and BTC remains relatively high. “
Bitcoin daily price chart. Source: Coin360
As the Bitcoin price corrected, various altcoins also suffered large losses. Ether (ETH) fell 4%, Chainlink (LINK) lost 6.42%, and the DeFi Compund (COMP) token decreased 13.17%.
According to CoinMarketCap, the total capitalization of the cryptocurrency market is now $ 255.7 billion and Bitcoin’s dominance rate is 65.1%.
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