Bitcoin price plunged from levels around $10,000 over the weekend session. While most traders were bullish on the largest cryptocurrency being able to sustain gains above $10,000, some analysts remained bearish saying that a reversal was likely due to Bitcoin’s technically unsupported surge. The price tanked by almost $2,000 in less than two hours. Several tentative support areas failed to rise to the occasion including $9,500, $9,000 and $8,400. The bearish leg extended towards $8,000 but slowed down above $8,100.
Last week surge above $10,000 caught many investors by surprise. Although, a rally was expected, many people were looking forward to it after the halving. As few expected, Bitcoin slump back into the $8,000 range means that many investors can join the market at a lower price in order to capitalize on a post halving rally.
At the time of writing, Bitcoin is trading at $8,707. All eyes are glued on $9,000 but seller congestions at $8,900 has become impenetrable. The bulls are also battling the resistance at the 61.8% Fibonacci level. Slightly below the market value, is the first support provided by the 50 SMA in the 4-hour range. A wider glance shows Bitcoin above a key support zone I explored last week between $8,000 and $8,500.
BTC/USD 4-hour chart
According to the prevailing technical picture, Bitcoin is likely to enter into consolidation as halving takes place. The RSI moving horizontally at 36 after a minor recovery from levels at 30. The low volume also suggests that rapid price movements are unlikely in the near term.
Bitcoin Intraday Key Levels
Spot rate: $8.707
Relative change: -22
Percentage change: -0.24%
Trend: Short term bullish bias
Volatility: Low
