- Bitcoin Futures expiration may cause a volatility spike.
- BTC/USD recovery is capped by $6,000 resistance.
Bitcoin spiked to the intraday high of $5,965 amid a short-lived boost of volatility and trading volumes. However, the momentum proved to be unsustainable and most likely related to one-off transactions. The digital currency No. 1 is down 3.5% on a daily basis and mostly unchanged since the beginning of the day.
Bitcoin traders should be prepared for a volatile day as we have a sort of quadruple witching day for cryptos: the end of the week, months and quarter, plus the expiration of July Bitcoin Futures on CME. Investors may attempt to unwind their futures positions to avoid settlement.
Bitcoin is going have the fourth bearish week in a row. The coin has lost 20% of its value in June, slipping below $6,000 handle. While hardcore crypto enthusiasts point out that it is still 135% higher than 12 months ago, short-term speculators are disappointed and may be leaving the market for now.
Bitcoin technical picture
From the short-term perspective, the upside is capped by $6,000, followed by 50-SMA (hourly chart) at $6,055. Once it is cleared, the bulls may count on an extended recovery towards $6,200. On the downside, the immediate support comes at Sunday's low at $5,777, followed by $5,550 (November 12 low).
BTC/USD, the daily chart
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