Bitcoin looked pressured during the American session as the pair continued to trade under the 30,000 level. BTC fell to an intraday low of $28,821 on Friday after US inflation data touched its highest level since 1981, bringing a black cloud over investor sentiment. BTC/USD resumes its depreciation as traders now eye additional downside price objectives around the $28,000 zone. Significant selling pressure hastened around the $29,500 region, a level it has not consistently traded below since the end of May. Cryptocurrencies might, in theory, trade separately from traditional financial markets, but they have generally proven to be correlated with inflation reports. The recent bullish bet above the $32,000 level per Bitcoin derivatives data was disappointing, as the prediction was invalidated. The open interest for the June 10 options expiry is $800 million, but since bulls were excessively positive, the true value will be much lower. Bitcoin is currently trading below $30,000, which means that the most bullish bets seem invalidated.
Key Levels
Resistance Levels: $37,000, $33,000, $30,000
Support Levels: $28,000, $25,000, $22,000
BTC/USD Daily Chart For the fourth day in a row, the BTC/USD pair extended its current decline from levels above the $30,000 mark, experiencing heavy selling. The pair fell to a new June low under $29,000 to register an intraday low at the $28,821 level as a result of the bearish momentum, which could act as a stimulus for more depreciation in the immediate term.
On the daily chart, technical indicators are practically not yet in oversold conditions, with the relative strength index (RSI) on the verge of sliding below the 40 mark. Meanwhile, the recovery from the medium-term low of $25,388 is being seen as reversing the entire long-term downtrend from the high of $69,000.
BTC/USD 4-Hour ChartThe BTC/USD has now dropped to as low as $28,821, and the intraday bias is still to the downside. The recent drop is thought to be a complete growth correction from $32,383 to $29,000. As a result, the BTC/USD is anticipated to test the lower levels of horizontal support, which are now around $28,000.
Overall, the sentiment in the pair remains neutral for the time being. The price activity since the level of $25,383 has been seen as a correction pattern. One more fall is expected till the pattern ends. On the downside, a break below the minor support level of $28,000 would shift the bias to the downside for a support level of $25,383.
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