At 2 A.Thousand. (UTC) time Bitcoin (BTC) cost abruptly dropped 5.11% to $ix,256 before recovering to trade in the $9,500 range. This followed a previous sudden drop on Th after BTC briefly touched $10K to fill the CME futures gap.

Crypto market weekly price chart

Crypto market weekly cost nautical chart. Source: Coin360

Information from CoinMarketCap shows that before in the day the cost surged to $ix,939 and the following consolidation of higher lows and lower highs convinced some traders that further continuation to $10K and to a higher place was in the works.

BTC USDT 1-hour chart

BTC USDT ane-hour chart. Source: TradingView

After the surge to $9,939, traders were watching to encounter if $nine,650 would function as back up and the break beneath the pennant trendline and twenty-MA dropped the price below a loftier book node on the volume contour visible range.

BitMEX XBTUSD Liquidations

BitMEX XBTUSD Liquidations. Source: Skew.com

Data from Skew shows the drop to $9,256 liquidated $28 million in BitMEX long positions but equally discussed in a recent assay, subsequently a more than 20% rally since May 11, Bitcoin price was expected to retest sometime resistance levels to encounter if they had truly flipped to support.

The 1-hour chart suggests that a period of consolidation at $9,200-$ix,300. At the time of writing the RSI is flat in neutral the neutral zone (50) and the MACD histogram remains negative. The Chaikin Money Flow oscillator also remains below 0 and the cost continues to notch lower highs.

Scalpers will note that on the xxx-minute chart Bitcoin price is already in the midst of an oversold bounce but sustained purchasing volume will exist the indicator that volition provide the best point.

Bullish scenario

Despite the $500 correction, Bitcoin'southward cost is notwithstanding above the ascending trendline from the recent low at $eight,200. In the twenty-four hour period leading up to and besides during the halving, the price dropped to this trendline, and today'southward pullback to $9,256 tapped it once again.

If the toll can concur above $nine,300 and work its manner dorsum to a higher place the 20-MA on the i-hour chart, bulls will be ready to attempt a button back above $ix,600.

Bearish scenario

BTC USDT 4-hour chart

BTC USDT 4-hour chart. Source: TradingView

Looking at the 4-hour nautical chart, if Bitcoin toll falls below the ascending trendline and fails to find support at $9,200, a drop to the 100-MA at $nine,000 is likely.

The VPVR also shows a high book node at $viii,894, which is slightly below the 100-MA, then in the effect that the cost falls below $ix,000, traders will likely look to open positions at this level.

The views and opinions expressed here are solely those of the author and do non necessarily reflect the views of Cointelegraph. Every investment and trading move involves adventure. Yous should deport your ain research when making a conclusion.