Bitcoin experienced a sharp sudden downfall which resulted in about 6% price loss in the last 24 hours. The price crash which resulted in prices falling below critical support at $9,500 happened after bitcoin failed the resistance at $9,900 about 48 hours ago.
Bitcoin Price is presently roaming around the $9,390 area as the bulls are trying to conjure little strength to resist further plunge.
The market sentiment has turned bearish and further price plunge is highly probable. Although the next support level at $9,000 seems strong enough to intercept a heavy price crash, the magnitude of this ongoing bull retracement will determine how much continuation in a bearish path the price will move from here.
Bitcoin’s price has failed to test major support levels. A break below the resistance at $9,500 has allowed prices to fall below the middle moving average of the Bollinger band where major support lies. Below this, the bitcoin price will likely fall to the sub-$9k level.
BTC/USD Price Chart
The Resistance Strength Index (RSI) fell sharply after almost touching the 70.0 overbought area on Wednesday, June 10. The quick heavy decline brought the RSI to the oversold condition at 25.0 where the bulls began to resist the fall.
The RSI has risen beyond the 30 RSI level and is currently approaching the mid-line. If the bulls succeed here, we may see bitcoin perambulating the $9,500 area later today. Beyond this resistance level, further friction exists at $9,750.
In the bearish scenario, sellers may step in harder to achieve lower prices below the $9,000 level.
If they succeed here, bitcoin will test the support level at $8,750 before landing on the Bollinger’s bottom at $8,700. Below this level, further support exists at $8,500 where prices have had major hurdles in the past.
Why The Sudden Plunge In BTC Markets?
The market sentiment might have turned bearish according to a report of hacking activities which took place on Bitfinex cryptocurrency exchange four years ago.
Crypto tracking platform Whale Alert reports that the hackers involved in the described hack moved 416 bitcoin (BTC) on June 11. The funds, which were valued at $4.1 million at the time of the transaction, were sent in 20 different transactions, each bearing between 15 and 33 BTC.
The news might have spurred some fear in many bitcoin investors which supposed a dump was imminent.
At the moment, no conversion to other major cryptocurrencies or fiat has been confirmed and it seems the markets will return to normal soon.