BTC Price Drops Below $9K Yet Traders Buy the Dip

Annabella Cornelly

It is always exciting to watch the crypto market and observe the latest trends occurring in the crypto community. Traders, as we can see right now, continue to purchase on each dip while being aware that BTC price fell below nine thousand USD. This approach is typical and quite predictable – traders have developed and tested their strategies and tactics and hope they will be of use to them this time.

One of the latest events is the price drop – now BTC is below nine thousand USD and has reached eight thousand eight hundred and thirteen USD. For the past four days, the crypto price has been losing momentum. What has just happened coincides with a visible surge in sell volume. Some experts encourage all participants to take a deeper look at the weekly price chart below to see the current situation in the crypto market.

Previously, market specialists discussed and noted that buyers have kept buying on each dip below nine thousand USD. The latest drop has taken the price very close to a volume VPVR node at eight thousand eight hundred USD. The daily chart below clearly indicates the move and gives a better understanding of the described tendency that Bitcoin and USDT have taken.

In case bears manage to decrease the price below the level, the asset might fall to the 200-MA having the value at eight thousand three hundred and twenty-five USD. If there is no support found, then the price may appear in the zone of seven thousand four hundred USD and six thousand eight hundred USD.

Weekend Pullback and Thin Trading Volume

Weekend corrections seem to have occurred on thin trading volumes. This is something most investors are accustomed to. At weekends, the crypto market can witness mild pullbacks. According to experts, the market is currently is, in some sense, neutral zone after the expiry that we saw on Friday. This event didn’t make any visible impact – many call options hoped for ten thousand USD or even higher. It wiped out sixty-seven percent of Thursday’s open interest, including seventy present of the CME and fifty percent at Derbit.

At the same time, the futures expiry made a certain change as CME traders rolled over the majority of the futures positions last Thursday and left just thirty-eight million USD for the next day’s expiry. Some of the leading crypto exchanges demonstrate traders’ preferences and actions they have taken this week. Bitmex as well as Derbit open interest seemed to remain the same after the event.

All in all, the situation signals traders are not ready to open new positions before the weekend starts. The negative performance of the financial markets last Friday made BTC investors feel cautious since the correlation between the crypto and S&P 500 is comparatively high.

The price correction was visible and there were significant losses in altcoins. ETC dropped by four percent, LINK lost over six percent, and COMP fell by more than thirteen present. At present, the overall cryptocurrency market cap stands at more than two hundred and fifty-five billion USD. More than that, BTC’s dominance rate exceeds sixty-five percent. Studying the charts and diagrams may give participants deeper knowledge of the situation and help them predict further changes and moves.