In just a few minutes’ time, Bitcoin will close May’s price candle. Analysts say that this close will be crucial for indicating in which direction the cryptocurrency market heads next.
A region of importance that many analysts are eyeing is the low-$9,000s. As one analyst explained:
“We’ve not had a Monthly close above 9360 in nearly 12 months. Rejections from this level have led to tests of $6k and eventually $3k.”
Indeed, when Bitcoin failed to surmount this level in February, prices dove to $3,700 during March’s capitulation. And when BTC was rejected from this level in 2018, there was a brutal bear market to $3,150 in the ten months that followed.
$9,360 is also around where the downtrend formed after the $20,000 high currently sits, adding to its technical importance.
Right now, things are coming down to the wire in terms of Bitcoin closing above this level. The asset trades at $9,400 as of the time of this article’s writing and the close is just a short while away, TradingView has shown.
BTC price chart from a crypto trader “Cold Blooded Shiller” (@ColdBloodShill on Twitter).
Bitcoin Being Dragged Down by Stock Market
Bitcoin’s retracement to $9,400 ahead of the monthly candle close comes after it surged as high as $9,700 on Saturday, wrested higher by Ethereum.
The underperformance of the flagship cryptocurrency seems to be related to a reversal in the S&P 500 futures, which reversed after passing 3,000 points last week. They are currently down 1% during the Sunday evening trading session, which is falling in response to a number of events.
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