Bitcoin (BTC) Price Crashes Below $9,100, but This Top Trader Says He's Long
Prominent cryptocurrency chartist Scott Melker has revealed that he’s long on Bitcoin after the most recent crash below the $9,100 level.
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.
Rimma TrukhinaPlunging 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.
Alex DovbnyaAvoiding 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.
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.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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