Bitcoin price fell on Monday morning, wiping out 2.2% of its value and trading at 8,535 USD as of 06:40 a.m. ET. The cryptocurrency started a decent upward move above the 8,500 USD level after earlier reached a daily bottom of 8,477 USD.
The price is trading with a positive tone above 8,500 USD and the 100 hourly simple moving average (SMA). The cryptocurrency is currently consolidating and it could soon climb above the 8,800 USD resistance.
Bitcoin has been moving within a clear upside long-term trend recently. The digital coin finished the fifth consecutive week with gains and hit new multi-month high at 9,044 USD before retreating towards 8,700 USD amid profit-taking and speculative positioning. Bitcoin has been moving in a tight range limited between 8,747 USD on the upside and 8,477 USD on the downside.
However, the short-term trend is bearish. On the 1-hour chart, the cryptocurrency price is in a sideways trend. After price had fallen from the 9,000 USD overhead resistance, the 12-day EMA and the 26-day EMA were trending horizontally. On June 2, the bulls made an upward move but were resisted at the 8,800 USD price level.
The market fell to the support of the 12-day. The Bitcoin market now ranges below the 8,800 USD price level. The crypto’s price is above the EMAs which indicate that price is likely to rise to retest or break the 8,800 USD price level. Meanwhile, the MACD line and the signal line are above the zero lines, which indicates is a buy signal.
The Bitcoin market cap is 151.404 billion USD with chart dominance at 55.80% and daily trading volume of 5.63 billion USD.
Crypto market recap
The cryptocurrency market is mostly colored in red with major altcoins suffering slight declines.
Ethereum, the second largest cryptocurrency, edged lower by 2.5% to 264.52 USD. The digital money suffered correction after pumping 60% to the end of May.
Bitcoin Cash is down by 3% to 432.78 USD, while Litecoin is down by less than 2% to 113.16 USD.
The biggest collapse was registered by EOS, which wiped out 6% of its value after the cryptocurrency holders voted to reduce the annual inflation rate from 5% to 1% as of June 1. According to the poll’s description, out of the current 5% of annual EOS inflation, 4% is being accumulated in the eosio.saving account while 1% is distributed among BPs in exchange for network maintenance. About 3.6 million EOS are reportedly created and sent to this on-chain account every month, and this number increases due to compound inflation mechanisms. The original purpose of accumulating funds on the aforementioned account was allegedly to have the community vote on how to spend it or even burn it.
The best performing cryptocurrencies today were Bitcoin SV and Ripple’s XRP, which gained 1.5% to 0.4471 USD and 14.7% to 218.69 USD, respectively.
The total cryptocurrency market value fell by 3 billion USD to 271.422 billion USD.
Bitcoin price analysis
Currently, Bitcoin price is in the range of over 8,500 USD. The cryptocurrency may start a sharp upward movement above the resistance levels of 8,800 USD and 8,850 USD.
Recently, Bitcoin price has slowly climbed above 8,400 USD and 8,500 USD.
There was closing above the 8,600 USD and a 100-hour simple sliding average. Later, the pair started a downward adjustment below 8,800 USD.
There was 8,650 USD support test where the bulls appeared. Moreover, 23.6% Fibo retracement rate of the recent move from 7,995 USD to 8,842 USD would likely act as strong support.
On the downside, a key upward trend line is formed at 8,640 USD. If there is any downward break below the trend line, the price can test the support of 8,600 USD and a 100-hour simple moving average.
The next important support is close to 8,500 USD. If there are more losses, the price can test support at 8,400 USD. It matches the 50% Fibo retracement rate of the recent move from 7,995 USD to 8,842 USD.
On the upside, the initial resistance is close to the 8,800 USD level. If there is a break above the 8,800 USD barrier, the price may accelerate above 8,850 USD. The next key upward resistance is close to the 8,900 USD and 9,000 USD levels. If there is a breakthrough over 9,000 USD, the price is likely to rise above 9,100 USD.
The price of Bitcoin is now consolidating profits above 8,500 USD. In the short-term, there may be a downward revision below 8,600 USD. However, there is a lot of downward support close to 8,500 USD and 8,420 USD.
Successfully closing below 8,400 USD will probably begin a steady downward movement to the 8,100 USD level in the near future.