Bitcoin reversed its bullish streak and just formed the other leg of the table on the intraday chart as it lost 8% in just minutes from trading around $10,100 to a candlewick dip around $9.2k on Coinbase.
Important to note that as and when BTC price has breached above $10k in the ongoing year until the time of writing, it has faced an utter resistance around $10.5k, and the bullish movement turned to be momentary.
Moreover, during the previous month, when Bitcoin had a flat momentum, it experienced a brief rise above $10k and later was confined to a range. With a confirmed hope of a rise in BTC price, there were many HODLers and many investors who opted for a long position. With an aggressive number of investors opting for the long position, the market broke when the US market opened, which to an extent, is believed to be reminiscent of May 20 and 21 in terms of the time of volume.
#BTC crashes -$1000 in 15 minutes on US opening (exact same time and volumes as May 20 and May 21)
— PlanB 🔴 (@100trillionUSD) June 2, 2020
However, just when the market crashed, many coins, along with BTC, experienced the hit, which exhibited the classic behavior of Bitcoin and its price. This was not at all new for the crypto veterans but might have shaken the inexperienced and weak hands. Although the ones holding short positions would have generated profits if taken timely decisions.
Additionally, if we look at the statistics and price movement of the coin, we see that Bitcoin has diligently made efforts to rise above $10k. BTC has tested $10.5k resistance by reclaiming above $10k, thrice over the past 8 months. After a gradual dip in October 2019, Bitcoin price rose as high as $10.5k in November 2019, while towards the end of the previous year, the king of cryptocurrencies retested 7-month support around $6,400.
After drawing a winning streak at the onset of 2020, Bitcoin again faced strong resistance at $10.5k and experienced the March crash when the coin retested yearly lows around $3,800 price area. With strong support amidst the Pandemic, the price of Bitcoin rebounded yet failed at $10.5k, proving rejection from the major resistance point.
The current Bitcoin price movement and the trend are flattened than ever, and the 20-day Bollinger Bands laid are squeezing, which means BTC price trend is likely to sway around the extremities of either the upper or the lower BB. Moreover, it was just a matter of seconds that the price of Bitcoin plummeted and started consolidating below the 38.20% Fib Retracement level.
The technicals are drawing a bearish picture, but the MACD appears slightly bullish due to intraday recovery from the utter bottom of $9.2k, and at the press time, the coin was trading at $9.4k. The RSI of the BTC is lying at 33.34 and is already seen hovering around the selling zone.
The major support for Bitcoin to watch out for lies at $9.2k and $9k while the resistance appears ambiguous, which depends on the further momentum and traction.