Bitcoin price rebounds at $ 8.8K Support shows traders continue to buy dip

In the last hour, the price of Bitcoin (BTC) fell below $ 9,000 to a daily low of $ 8,813. Since June 24, the price of Bitcoin has been losing momentum as it set below 20-MA and today’s drop to $ 8,813 coincided with an increase in sales volume.

Crypto Market weekly price chart

Crypto market weekly price chart. Source: Coin360

As discussed in previous reviews, buyers have been interested in buying each drop below $ 9,000, and today’s drop brought the price closer to the brink of a key high-volume VPVR node at $ 8,800.

BTC USDT daily chart

BTC USDT daily chart. Source: TradingView

If the bears manage to push the price below this level, the top-ranked digital asset could drop to 200-MA at $ 8,325, but if it finds no support at this moving average, the price could drop to the $ 7,400 area at $ 6,800.

Weekend corrections occur on thin trade volume

Investors are used to slight pullbacks on the weekends as trading volume tends to decrease. It is also possible that larger traders are watching from the sidelines after yesterday’s $ 1.06 billion BTC futures and options expire and the next monthly close next Tuesday.

According to Cointelegraph contributor Marcel Pechman, the market is in a neutral zone after the massive expiration of options on Friday. In private comments, Pechman said:

“The expiration of the options did not have a significant impact, as most call options were targeting $ 10K or more. This event removed 67% of the $ 1.7 billion in open interest from the previous day, including 70% on the Chicago Mercantile Exchange (CME) and 50% on Deribit.

The futures expiration had a slightly different history as the CME traders turned, reopened to a longer maturity, most futures positions on June 25, leaving just $ 38 million for the expiration on Friday. Bitmex and Deribit open interests also remained unchanged after expiration, indicating that most positions were renewed, but at OKEx half of the $ 860 million futures contracts expired.

Overall, this indicates that traders are unwilling to open new positions before the weekend. The negative performance of financial markets on Friday could have scared Bitcoin investors as the correlation between the S&P 500 and BTC remains relatively high. ”

Bitcoin daily price chart

Bitcoin daily price chart. Source: Coin360

As Bitcoin’s price corrected, several alternative currencies also suffered heavy losses. Ether (ETH) fell 4%, Chainlink (LINK) lost 6.42%, and DeFi token compound (COMP) fell 13.17%.

According to CoinMarketCap, the total capitalization of the cryptocurrency market is now $ 255.7 billion and Bitcoin’s dominance rate is 65.1%.

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