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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 $10,200 high.

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

BTC/USD – Daily Chart

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)

BTC/USD – 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.

Please note: Insidebitcoins.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

 

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      Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.