Bitcoin (BTC) Price Crashes Below $9,100, but This Top Trader Says He's Long

News
Thu, 06/11/2020 - 19:03
article image
Alex Dovbnya
Bitcoin's plunge below $9,100 was a long opportunity, according to eminent crypto trader Scott Melker
Bitcoin (BTC) Price Crashes Below $9,100, but This Top Trader Says He's Long
Cover image via stock.adobe.com
Contents

Prominent cryptocurrency chartist Scott Melker has revealed that he’s long on Bitcoin after the most recent crash below the $9,100 level.

Melker
image by @scottmelker

While he doesn’t necessarily believe that this quick downward move will be followed by an immediate reversal, the risk-reward ratio of his trade is way too compelling to ignore. 

Related How not to Lose Money Trading Crypto, What Charts Can Tell You, and Why Bitcoin is Still Better Than Alts: Interview with Scott Melker
Related
How not to Lose Money Trading Crypto, What Charts Can Tell You, and Why Bitcoin is Still Better Than Alts: Interview with Scott Melker

Plunging in tandem with stocks  

As reported by U.Today, the Bitcoin price started to feel the heat of a major sell-off on Wall Street soon after the opening bell.

While e-mini futures did predict a bad day for U.S. equities, the market turned into a bloodbath during the trading hours, with the Dow shedding 1,612 points (5.97 percent). 

Amidst this turmoil, Bitcoin displayed a high level of correlation with stocks once again after it more or less started dancing to its own tune in May. 

The flagship cryptocurrency came close to dipping below the $9,000 level for the first time since late May, careening all the way to an intraday low of $9,078 on the Bitstamp exchange.

However, more dip-buyers came to the rescue, pushing BTC to its current level of $9,340.   

Related Bitcoin Price Forming New Selling Pattern, Bloomberg's Indicator Shows
Related
Bitcoin Price Forming New Selling Pattern, Bloomberg's Indicator Shows

Avoiding a painful drop to $6,000

On the plus side, Melker noted that BTC did manage to hold the 50-day moving average, which bolsters the reversal narrative.

If BTC prints a daily close above the resistance of the ascending wedge pictured on Melker’s chart, there is a good chance that an ‘epic bullish’ swing failure pattern will come into play.

Melker
image by @scottmelker

At press time, Bitcoin is down more than 10 percent from its local high of $10,434 percent reached on June 1.

As reported by U.Today, Kraken Intelligence forecasted that a drop to $6,200 could be in the offing if Bitcoin failed to reclaim its five-figure price tag.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.