Traders Brace for Big Drop as Bitcoin Dips Below $9K for Seventh Time

The price of Bitcoin briefly dropped below $9,000. The weakening of a key support level may lead to a bigger drop. The price of Bitcoin (BTC) dropped below $9,000 in a rapid pullback, falling by 5% in 48 hours. It marked the seventh drop to the $8,000s for the top-ranked cryptocurrency by market capitalization within a span of two months, since early May. Thus, traders have been concerned that repeated drops below $9,000 may weaken a critical support level. Meanwhile, only $30 million worth of futures contracts were liquidated on the recent drop on BitMEX. The futures data indicates there exists a possibility of a bigger drop. Why did Bitcoin fall to the $8,000s and what do traders think? Bitcoin was due for a major price movement following nearly two months of low volatility. The direction of BTC’s next move was uncertain because BTC/USD was at a pivotal point. Technically, if Bitcoin stayed above $9,200, a potential retest of $9,500 and the $10,000 resistance levels were plausible. But the continuous retests of the $9,000 support level may leave BTC vulnerable to a deep pullback. Read More...

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