In the last hour, the price of Bitcoin (BTC) fell to USD 8.840. The drop occurred with less than 8 hours remaining before the weekly close.
A confluence of miners who sell more BTC than they mine, Bitcoin records 6 consecutive lows, and the USD 8,800 resistance level leaves BTC vulnerable to a severe setback.
Six consecutive lows since June 2019
As shown on the daily chart, since June 19, Bitcoin has recorded six consecutive lows. The price was rejected at $14,000, $13,300, $12,300, $10,600, $10,500 and $10,000 , making each new high lower than the previous peak.
Bitcoin miners sell
- Immediate Edge
- Bitcoin Circuit
- Bitcoin Code
- Bitcoin Evolution
- Bitcoin Trader
- Bitcoin Profit
- The News Spy
- Bitcoin Era
- Bitcoin Revolution
- Bitcoin Billionaire
months after halving, on-chain data suggests
In the technical analysis, the low highs indicate that buyers are not setting a new upward cycle. Every time a low is reached, it shows that the selling pressure in the market is simply too strong to pull out.
Bitcoin records six consecutive highs since June 2019. Source: Tradingview
A clear rejection in the $9,800 to $9,900 range and the third projected test at the $8,800 support level suggest that Bitcoin is not ready to start a rally above $10,000 yet.
The triple test of $8,800
Bitcoin’s price bounced off at $8,400, testing the $8,000 support area for the second time in four days. Generally, digital assets tend to break below a high support level on the third or fourth tap. This means that BTC is likely to see a clear stretch at the $8,800 level at the weekly close.
Halving hype drives second strongest spot volume on record
Almost immediately after falling about $8,800, the price of Bitcoin rebounded to about $8,900, showing that BTC is set for a short-term price spike after the weekly opening on May 25.
But, TradingLite data shared by crypto currency trader, Hsaka, shows a significant amount of sell orders on OKEx in the range of $9,300 to $9,400.
Based on the strong response by buyers to the $8,800 support level and selling pressure at $9,300, it is likely that BTC will remain in the $8,800 to $9,300 range before seeing the next reversal.
If the Bitcoin price recovers in the short term below the $9,000 region and returns to the $8,800 level, it increases the likelihood that BTC will see a much larger correction to the $6,000 to $7,000 range.