After facing an extended bout of sideways trading, Bitcoin incurred a sudden influx of buying pressure earlier today that allowed it to surge past $9,000, which immediately led many investors to believe that an extension of this surge would lead the crypto to the coveted $10,000 region.
Despite this, excited investors were splashed with a bucket of cold water after BTC dumped nearly instantly after it broke above $9,000, which has led to a subsequent crash down to $8,600.
Bitcoin’s Stability in the $8,000 Region in Jeopardy After Recent Flash Surge
At the time of writing, Bitcoin is trading down 1% at its current price of $8,600 and is down from its daily highs of just a hair above $9,000.
Earlier this morning, BTC incurred a sudden influx of buying pressure – which is something that investors have gotten used to over the past several weeks – which sent it directly to $9,000, which immediately resulted in a drop that sent it reeling back down to its current price levels.
Although this drop does appear to be negative for the cryptocurrency’s bulls, it may actually be healthy.
The Cryptomist, a popular cryptocurrency analyst on Twitter, discussed this possibility in a recent tweet, explaining that a move down to the lower-$8,000 region could be proceeded by a large upwards surge that allows it to extend its upwards momentum further.
“$BTC: 8540 is about to be reached (post below). When this breaks I expect to test 8450 (smaller) rising wedge support which should break also. Then we test 8170 region. If 1D RSI support is broken by then – Correction confirmed and deeper drop. THIS IS HEALTHY,” she explained.
8540 is about to be reached (post below)
When this breaks I expect to test 8450 (smaller) rising wedge support which should break also
Then we test 8170 region
If 1D RSI support is broken by then – Correction confirmed and deeper drop
THIS IS HEALTHY
Rt/ Like pic.twitter.com/BvJkr1s80F
— The Cryptomist (@TheCryptomist) May 30, 2019
Assuming that her assessment of the crypto’s price action is accurate, then the current selling pressure may begin to snowball as the day continues on.
Crypto Markets Plunge Due to BTC Volatility
Bitcoin’s massive volatility has led the aggregated crypto markets to lose their upwards momentum, with most major altcoins erasing much of the gains that they had incurred earlier today.
XRP, which has climbed to highs of $0.47 earlier today, followed Bitcoin’s lead and plunged to lows of $0.44, where it has found some levels of support.
Ethereum has also plunged today and is currently trading down nearly one percent over a 24-hour trading period. Although its drop over a 24-hour period is somewhat minimal, over a shorter time frame it has lost a significant amount of its recent gains, and is currently trading down from daily highs of $287.
It is highly probable that traders and analysts alike will gain a better understanding of whether or not further losses are imminent as the day continues on and the market’s price action continues to unfold.
Featured image from Shutterstock.
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