This week the Bitcoin (BTC) price has struggled to break through the $9600 resistance and at the time of writing the highest ranking cryptomone currency in CoinMarketCap is finding support around $9400.
The technical analysis shows that there is a strong support level at $9,270 and if the price of Ethereum Code falls below that level, there could be a sharp reversal.
For many traders, the $9,000 and $9,270 levels are considered to be the last lines of defense for buyers, and protecting those levels is critical to prevent another price drop to $8,000.
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What happens if the $9,270 mark is broken?
In the last 24 hours, Bitcoin’s price tried to drop from $9,270 in a quick sale from $9,400 to $9,240. Immediately after reaching $9,240, BTC bounced back hard to $9,450.
Bitcoin has been in essentially the same range since June 11, with the $9,200 range acting as a support area. BTC has fallen to the $9,000 level once in the last eight days, demonstrating relatively low volatility compared to May.
The lack of volatility since the beginning of June can be attributed to the strength of buyers, which stands at $9,270. Sellers are trying to get the BTC back to $8,000 but data shows that bulls are defending the $9,000 to $9,200 with large orders mainly in BitMEX and OKEx.
On June 18, Bitcoin trader Edward Morra wrote that $40 million of limit orders between $9,270 and $9,350 were placed on BitMEX alone. The trader stated:
„More than 40 million dollars stacked up in limit orders around 9,350 – 9,270 dollars at Bitmex. It doesn’t look like they’ll be thrown for now, it takes a lot of effort from the bearish side to get through.
The abundance of purchase orders in the low $9,000 region made BTC recover quickly as soon as it reached $9,000 or $9,200 in the last few days, but support levels can weaken after multiple retests in a short period of time.
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If the $9,000 to $9,270 range is broken, traders anticipate a sharp decline in the Bitcoin market.
Cryptomoney trader Satoshi Flipper noted that the breakout below the $9,200 support range could cause a drop to the $8,600 to $8,700 support range in the short term.