Bitcoin price is up over 4% as buyers recover from yesterday’s dip to $ 8,900
Bitcoin broke below a crucial support level on Monday morning, before an afternoon rally, correlated to the US stock market, saw buyers recoup the losses.
As US futures markets posted an average of 3% gains on the day, Bitcoin rallied above $ 9k following a drop to lows of $ 8,949. The breakout to the top of the range continued over the past 24 hours to see the pioneer crypto hit a high of $ 9,600, to have an impressive $ 700 rebound on the day.
According to popular crypto analyst Michael van de Poppe, Bitcoin recovering above $ 9k puts it on track to hit the coveted $ 10,500 level. The analyst previously tweeted that BTC/USD was set to reverse to $ 9,300 before retracting to the support zone at $ 9,000.
According to the analyst, more buyers’ holding support above $ 9k are needed if bulls are to mount a move for prices past the stubborn resistance at $ 10.5k.
The jump to $ 9.6k thus gives Bitcoin the cushion to consolidate at the top of the $ 8,900-$ 9,000 range. Poppe believes that this will bring the “price back in range,” opening it up nicely for a retest of $ 10,500.
Bitcoin technical picture
The reverse from a monthly low of $ 8,949 happened on increased buying volume as investors rushed to buy the dip. However, although an uptrend could materialise, BTC/USD may correct lower once prices hit near $ 9,800.
Support around $ 9,300-$ 9,000 appears secure but selling pressure will resurface if buyers don’t hold support at current levels above $ 9,500.
The 4-hour charts show that Bitcoin’s previous climb to the $ 9,700 – $ 9,880 range was met with major resistance on June 11. The crypto is likely to hit a similar wall on the upside if buyers look to break even.
Bitcoin options open interest
Meanwhile, around $ 930 million in open interest on Bitcoin options contracts is set to expire on June 26, a scenario some traders are pointing to as a factor that could cap gains in the short-term.
According to data platform Skew, over 100,000 Bitcoin options contracts represent almost 70% of total open interest, with their expiry coming along as $ 10k remains the cap to recent upsides. Interest has also surged 100% since April, topping $ 1.3 billion.
A look at the derivatives data shows open interest is highest at $ 9,500, which indicates that investors believe that cryptocurrency is set to settle in a range around this level.