Bitcoin Price Prediction: Bitcoin (BTC) Plummets to $9,200 Low, Faces Rejection From Overbought Region

Bitcoin (BTC) Price Prediction – June 2, 2020
After breaking the $10,000 overhead resistance yesterday, BTC/USD pair reached a new high at $10,398. The recent high was an overbought region of the market. Today, Bitcoin is retracing after rejection from the overbought condition. The market suddenly plunged after retesting a $10,200 high.

Key Levels:
Resistance Levels: $10,000, $11, 000, $12,000
Support Levels: $7,000, $6,000, $5,000

Surprising Bitcoin has plunged to $9,200 low but corrected upward to $9,500. It was earlier expected that sellers may emerge at the overbought region to push prices down. The estimated retracement was to reach a low of $10,000 or $9,950. However, the market plunged to $9,200. Bitcoin is back to the upside range where price fluctuates between $9,300 and $9,800 and then retest the $10,000 overhead resistance. It is not clear if the downtrend will resume.

On the downside, if the bears turn around and break the $9,000 support, the downtrend will resume. The market will drop to $8,800 and then to $8,200 low. That has been the usual market scenario. On the upside, if the bulls sustained hold on the upside range, a rebound can reoccur to push price above the overhead resistance. After the recent breakdown, Bitcoin is  below 80 % range of the daily stochastic. This implies that the market is in a bearish momentum and price is overbought.

BTC/USD Medium-term Trend: Bullish (4-Hour Chart)

On the 4 hour chart, Bitcoin plummeted to $9 200 low. The downtrend may continue if price breaks the $9,000 support. Presently, price corrected upward and it is currently fluctuating above $9,500. Bitcoin may rebound if price pushes above the $9,600 high. The Relative Strength Index period 14 has earlier reached the overbought region at level 77 but dropped to 45 indicating that BTC is in the downtrend zone.

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