Bitcoin price analysis: BTC/USD breaks free from the range, triggers a trading limit on CME


  • Bitcoin started moving after a prolonged period of consolidation.
  • Bitcoin futures collapsed, triggering trading limit.
  • A recovery above $6,000 is needed to mitigate the immediate bearish pressure.

BTC/USD is trading at $5,548, down over 10% since this time on Wednesday. The largest digital coin has experienced a strong sell-off triggered by a combination of technical factors intensified by FUD (Fear, Uncertainty, and Doubt). 

Bitcoin touched $5,312 low on Wednesday before the technical recovery threw it up to the current levels. 

Bitcoin futures on CME reached a trading limit, tumbling down 13% on Wednesday. CME's spokesman explained that the 2-minute pause was initiated before 2 p.m. Eastern Time. A 20% collapse would have led to a hard limit, however, it did not happen.

"From a technical analysis standpoint, as bitcoin's price falls below $6,000 we're seeing liquidation: stop-loss orders automatically going into effect and/or people trying to play the breakout," Mati Greenspan, a senior market analyst at eToro commented.

Bitcoin's technical picture

From the technical point of view, Bitcoin broke free from a very narrow range, triggering a cascade of stop orders. From the short-term perspective, the price needs to recover above $6,000 handle to mitigate the bearish pressure; however, there are no clear signals that the upside correction is gathering pace. The Relative Strength Index (RSI) stays flat in the oversold territory. 

On the downside, the critical support lies with $5,300.  A sustainable movement lower will exacerbate the decline.
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

BTC needs to defend critical support level at $10,600

Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. 

More Bitcoin News

UNI ready for a bullish assault, once $5.7 is cleared

UNI, the native token of a popular DeFi project Uniswap, rebounded from the support of $4.7 to trade above $5.5 during early Asian hours. By the time of writing, the token retreated to $4.9.

More Uniswap News

BNB full-blown sell signals aim for $22

Binance Coin had a particularly yielding trading period at the beginning of September. Although BNB showed signs of ascending to new yearly highs, the uptrend stalled at $33.50. 

More Binance Coin News

Bitcoin gets back in the game

This weekend saw one attempt by Bitcoin to break the $11000 barrier by taking advantage of the gap that Ethereum left with its sudden attempt to reach the $400 price level.

More Bitcoin News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC crystal ball gives bulls a faint flicker of hope

Bitcoin staged a healthy recovery this week. The pioneer digital currency price took off from the support area of $10,000 and touched the next psychological line of $11,000.

Read the weekly forecast

BTC

ETH

XRP