Bitcoin Price Movement Analysis for 8th June, 2021

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The king coin took yet another hit at its chances of recovery following a retracement of 10% compared to yesterday’s price. Naturally, the drop below $32,000 had a domino effect on the entire cryptocurrency market cap, which experienced $1 Trillion in withdrawals in the previous 24 hours alone.

Since the 19 May fall, the market has remained in a vulnerable state, and some thought that former US President Donald Trump’s recent statements against Bitcoin may have sparked yet another fall. However, other experts may claim that there is no direct link between market watchers’ remarks and an asset’s price, and that news might occasionally precipitate a movement that was previously planned to occur. In fact, a closer look at Bitcoin’s 4-hour chart revealed some warning flags previous to today’s rise.

Bitcoin 4-hour chart

Source: BTC/USD, TradingView

Bitcoin was trading within a symmetrical triangle, and a breakout had been predicted for a few days. The direction of a price swing, however, was always more inclined to the negative, especially as BTC was in a negative trend previous to the development of its pattern. At press time, Bitcoin was trading at $32,000, with just one important milestone standing between it and a plunge towards $20,000–the defence line between $28,600 and 30,000.

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Bitcoin’s support range of $28,600-30,000 was highlighted in early January when it retraced from $42,000. Subsequent pullbacks were likewise kept above this protective zone, triggering a recovery towards $60,000. Over the coming days, BTC could trade within this region but the threat of another breakdown loomed large.

The MACD’s Signal line was lower than the Fast-moving line, indicating that the market belonged to the bears. On the Awesome Oscillator, bearish momentum was also increasing. However, the RSI indicated oversold conditions and predicted a reversal, which might result in BTC recouping some of its $32,000 losses. Nonetheless, selling pressure would remain dominant, and bulls should be on the lookout for a sustained sell-off in the coming weeks.

In conclusion

Although Bitcoin appeared to have cushioned its losses around $32,000, selling pressure was expected to pull the digital currency into a support zone between $28,600 and 30,000, where it would likely trade in the coming days. If the area fails to keep prices in check, BTC will be exposed to a steeper drop near $20,000.

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