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Bitcoin [BTC] Price Analysis: BTC Tests Support At $8,900 Amid Imminent Price Plunge

Since bitcoin’s much-anticipated block reward halving took place, the top cryptocurrency is yet to take the market by any much surprises where the major effect was on Bitcoin Mining pools that saw a decrease in hash rate.

However, bitcoin is suffering from a selloff which saw its price crashing below the critical support level at $8,900.

Amid imminent price plunge, bitcoin failed the resistance test at $9,600. At the moment, the BTC/USD trading pair has set a voyage towards the $9,100 mark.

Currently trading at $9,070, the top cryptocurrency is showing signs of a possible climb above the resistance at $9,100. However, a move towards $8,500 is rapidly materializing.

BTC 24-Hour Price Action And Market Capitalization

The price of bitcoin plunged by around $800 within the last 24 hours. This implies about 5% decline in price and market capitalization also decreased accordingly.

As of Thursday, May 21, 07:39 hours UTC, the price of bitcoin was $9,740. However, about $57.84 billion of the volume was traded amid $158.94 billion of market capitalization. 

These figures bent towards a bearish bias amid a 5% market movement since yesterday. Market capitalization now stands at $167.06 billion as price moves towards $9,000.

Bitcoin Technical Analysis

Prices tested the support at $8,900 area and bounced off. The support area intercepted the 0.618 Fibonacci retracement level and bitcoin is moving ahead of a rising bullish pattern.

Amid the rising pattern, the next major resistance level to watch lies between $9,286 (0.786 Fibonacci retracement level) and the $9,500 mark.

If prices break the resistance at $9,286 and escape the 0.786 Fibonacci level, and the bulls gather more energy to push beyond $9,500, we may see prices touching $10,000 in the short term.

The Resistance Strength Indicator (RSI) is now moving sideways on the 50.0 area. A bearish move was intercepted at the 48.0 area as bitcoin took a bullish turn. 

Although prices will likely see some drawbacks along before reaching 70.0, the overbought condition will bring bitcoin well above $9,000 in the short term. 

Analysts’ Opinions On Bitcoin Price Action

Analysts are leaving divergent opinions as to the possible short term price of bitcoin. According to popular trader, ANBESSA, 

Also, renowned trader CryptOrca suggested that bitcoin needs to hold the key $8,000 level to turn bullish on the long-term.

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Bitcoin Price Tests Support At $8,900 Amid Imminent Price Plunge
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Bitcoin Price Tests Support At $8,900 Amid Imminent Price Plunge
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Since bitcoin’s much-anticipated block reward halving took place, the top cryptocurrency is yet to take the market by any much surprises where the major...
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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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