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BTC Drops Below $30k Level Following Positive Weekly Close

Published 06/07/2022, 03:34 AM
Updated 06/07/2022, 04:00 AM
© Reuters.  BTC Drops Below $30k Level Following Positive Weekly Close
BTC/USD
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  • Bitcoin (BTC) has dropped below the $30k level in the last 24 hours.
  • BTC attempted to retest the $31,700 level but was followed by a bearish wave.
  • Should the current candle form a higher low than the previous day, then BTC may be setting up for a bullish move.

Bitcoin (BTC), the largest cryptocurrency by market capitalization, dropped below the $30k level in the last 24 hours following its rise to above $33k yesterday, according to CoinMarketCap.

BTC’s price drop over the last 24 hours came after it posted its first green weekly candle after nine weeks of red weekly candles. This may be a result of traders taking profits.

According to the crypto market tracker, the price of Bitcoin now sits around $29,490.63, which is a 5.48% drop in the last 24 hours. This has also pushed the price of Bitcoin down 6.89% over the last seven days. The market cap for the coin now stands at $561.71 billion.

BTC drops below 9 EMA (Source: CoinMarketCap)

Bitcoin’s price dropped below the 9 EMA line as can be seen on the daily chart for BTC/USDT. BTC attempted to retest the $31,700 level but was followed by a bearish wave, resulting in the price falling back down to its current level.

This is the second time in the last seven days that BTC has tested this level, with the most recent attempt yielding the same result. However, bulls seem to be trying to keep the price of BTC above the 9 EMA line as the current candle has a small wick underneath it, which represents buyers trying to keep the price above a certain level.

This may be a buying opportunity for investors as the two attempts have double-tapped the $31,700 level. Should the current candle form a higher low than the previous day, an ascending triangle will form, which may be a setup for a bullish move to $36,000.

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