Bitcoin Price Struggles to Stay Above $9,000 Amid Weak Trading Volume
Bitcoin (BTC) experienced another volatile week as its price dipped below the $9,000 mark, hitting an intraday low of $8,813 on June 24. Despite the decline, traders continued to “buy the dip,” highlighting strong demand at these levels. However, the persistent sell volume and fragile trading conditions have raised concerns about Bitcoin’s ability to maintain its footing.
Bitcoin’s Struggle at $9,000
Bitcoin’s fall below $9,000 was accompanied by a surge in sell volume and technical weakness as the price dropped below the 20-day moving average (MA).
Key Support Levels:
- At $8,800, Bitcoin reached a high-volume Volume Profile Visible Range (VPVR) node, signaling a critical support zone.
- A failure to hold above this level could push Bitcoin to its 200-day MA at $8,325. If that support breaks, prices could sink further to the $7,400–$6,800 range.
Weekend Trading Dynamics
1. Low Trading Volumes:
Weekend trading typically sees reduced volumes, amplifying price swings. The latest dip coincided with a sharp decline in activity.
2. Impact of Expiry Events:
Recent expirations of BTC futures and options contracts had a mixed impact on the market:
- On June 25, $1.06 billion worth of BTC options and futures contracts expired.
- According to Bitcoin supporter Marcel Pechman, most positions were rolled over, particularly at the CME, where only $38 million matured.
- At OKEx, half of the $860 million futures contracts matured, highlighting traders’ hesitation to open new positions ahead of the weekend.
Correlation Between Bitcoin and Traditional Markets
The S&P 500 continues to show a high correlation with Bitcoin, meaning broader financial market turbulence could spill over into the cryptocurrency space.
Marcel Pechman added:
“Friday’s financial markets’ negative performance might have spooked Bitcoin investors, as the correlation between the S&P 500 and BTC remains relatively high.”
Altcoins Face Sharp Corrections
Bitcoin’s decline has rippled through the broader cryptocurrency market:
- Ether (ETH): Fell by 4% to $1,675.
- Chainlink (LINK): Lost 6.42%, trading at $6.75.
- Compound (COMP): Suffered a massive 13.17% decline.
As Bitcoin struggles to maintain momentum, altcoins have shown increased volatility, reflecting the overall uncertainty in the crypto market.
Market Outlook: What’s Next for Bitcoin?
1. Key Levels to Watch:
- Bitcoin must hold support at $8,800 to avoid further declines.
- Breaking below the 200-day MA at $8,325 could trigger a drop to $7,400–$6,800.
2. Market Sentiment:
- Traders’ reluctance to open new positions suggests caution as monthly futures expirations approach.
- However, repeated buying at sub-$9,000 levels highlights strong accumulation and long-term confidence.
3. Macro Factors:
- Bitcoin’s high correlation with the S&P 500 means traditional market performance will likely influence its price.
Current Market Snapshot
| Metric | Value |
|---|---|
| Bitcoin Price | $8,813 |
| Crypto Market Cap | $255.7 billion |
| Bitcoin Dominance Rate | 65.1% |
| Top Altcoin Losses (24H) | ETH -4%, LINK -6.42%, COMP -13.17% |
Conclusion
Bitcoin’s repeated dips below $9,000 underscore ongoing market uncertainty as traders weigh macroeconomic factors, technical levels, and institutional activity. While accumulation at lower levels shows strong demand, a failure to hold above $8,800 could open the door for further declines.
As traditional markets remain volatile, Bitcoin’s correlation with indices like the S&P 500 highlights the need for caution. For now, traders and investors will closely monitor Bitcoin’s ability to reclaim and sustain the $9,000 level.
To stay updated on Bitcoin’s price trends and market insights, check out our guide on navigating crypto market volatility.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.