BTCUSD recovered from yesterday’s decline as sellers pounced on the buying opportunity. Although Bitcoin recovered, it points to the presence of a Bearish dominance.
Bitcoin broke several key support levels on its way down. Now that it is back to above $9,500 levels, BTCUSD will receive support at $9.5k.
BTCUSD still under a lot of pressure
Bitcoin’s rise past $10,000 on both occasions this month was greeted with an awful decline. The region between $10,000 – $10,500 is an established, harsh resistance zone.
BTCUSD found reliable support at $9,500.
The four-hour timeframe shows that BTCUSD will face another sell-off zone if it reaches the $9,732 – $9,878 region. That will be an emotional sell-off territory.
If we look at the four-hour chart carefully, we can see that BTCUSD reached above $9,732, on June 4 and June 11. And as soon as Bitcoin reached that range, significant selling was observed immediately.
Now that BTCUSD is below that range, people who purchased Bitcoin would be scared to lose their capital. They would look for breakeven or profit-booking opportunities. Therefore, as soon as BTCUSD reaches this level, we can expect another pullback.
BTCUSD price analysis and probable trading range
We analyzed the probable trading range for Bitcoin via the following two methods:
- Technical Analysis
- Derivatives data
Technical Analysis shows that $9,350 and $9,500 are secure support zones, while $9,850 is a crucial resistance level. The daily chart shows that BTCUSD is below the dynamic resistance level of the 20-day Exponential Moving Average of the Bollinger Bands.
Therefore, as per the Technical analysis, BTCUSD is expected to trade in the range between $9,350 – $9,850.
As per the Derivatives data, the highest open interest is $9,500. It shows that investors feel BTCUSD would likely trade around $9.5k