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.