Bitcoin

The bullish bounce by <a href="https://www.blockhead.co/tag/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin (BTC)</a> that took it from $58k to $65k between 2 May to 6 May was short-lived, with sellers quickly reclaiming the short term market dominance after the price rejection at $64.7k.This extended dip after the price rejection at $64.7k saw BTC break the next support level at $61.7k with a 2.31% drop over the past 24 hours. With BTC back under the descending trendline on the four-hour timeframe, it could offer profitable short term trading setups for intraday traders.<h3 id="can-bears-extend-bearish-momentum">Can Bears Extend Bearish Momentum?</h3><img src="https://academy-public.coinmarketcap.com/optimized-uploads/da7d05fcbd7547538d77d31a11367ef1.png" />BTC/USDT on TradingView (4H Timeframe)Over the past two days, the RSI (Relative Strength Index) has trended under the neutral 50. This showed a weakening of the buying pressure and an increase in the selling pressure.Furthermore, this was amplified by the sharp departure of capital from BTC within the same period. The CMF (Chaikin Money Flow) which tracks the inflow and outflow of capital from tokens showed a sharp drop from positive (&#43;0.42) to negative (-0.19).Traders looking to trade this selling trend can short BTC from the current market price of $61.1k with a profit target at $58.7k. However, traders must be on alert for potential changes in market sentiment, due to BTC’s volatility.<h3 id="cautious-moves-in-futures-market">Cautious Moves in Futures Market</h3>Market participants in the futures market opted for a watchful approach to the latest dip with a decrease in open contract positions. According to <a href="https://coinalyze.net/bitcoin/open-interest/?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">data from Coinalyze</a>, BTC’s Open Interest (OI) dropped by 1.12% over the past 24 hours.BTC’s price action along with the on-chart indicators and dipping open interest hinted at an extension of the bearish pressure in the near term.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/2ec0578faee549988ad0af1f4e6ae14d.png" />BTC Open Interest | CoinalyzeDisclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.

What’s Next as Bitcoin Dips Below Another Support Level?

Table of Contents

Blockhead

Outros artigos publicados em 10 de mai. de 2024

BitMEX Partnered With PowerTrade To Launch Deribit Challenger

Litecoin And Bitcoin Cash Look To Reclaim Higher Price Support While Momentum Grows On $RECQ Presale

Top 7 Altcoins Under $1 To Explode In 2024

CyberConnect Price Prediction: CC Soars by 128% – What’s the Key Driver?

Top AI-Powered Meme Coin Now Surpasses $1 Million in Presale – Next Big AI Crypto to Watch?

Apple Unveils AI-Focused Chip in Latest iPad Pro.

Join our free newsletter for daily crypto updates!