Bitcoin is set to take a dive in the next few hours. On Thursday, it has wiped out nearly 5% which has seen it fall on the edge of $9K. With this support shaky just hours before a historic event, investor jitters are set to push it over the edge. on the lower side, it is set to find stronger support around the $8.8K levels.
In less than 24 hours, Bitcoin futures of around $1B will be settled. This is historic and a first in the industry. In the past, future expiries have triggered a short term bearish trend. This has been the case once again, the bears have shown up right on time.
The concern now is will the growth of the futures, means a steeper drop. So far, it looks on track to do so.
Bitcoin-More Reason To Be Afraid
The $8.8K support will confirm a long term trend or short. If it holds, a rebound and potential to return to $9.6K range by early net week is possible. But if the bears break it, Bitcoin will be set to revisit its local $8.4K bottom.
With the weekend, there is bound to be a lack of accelerated moves. Over the weekend, the volume drops with many traders avoiding major moves, if Bitcoin goes in bearish, this will play in favor.
In the last few weeks, Bitcoin has set an unprecedentedly low level of volatility. The volatility drop dates back to 8 months ago. Analysts have continued to predict, that this will have a major consequence in a violent price action for weeks to come. Investors hope that this will be on the upside and not the current direction Bitcoin has taken.
As we reported yesterday, there was a major move in the PlusToken wallets as they moved nearly $200M worth ETH. This is set to add to the market jitters. Already, Ethereum is the largest loser in the last 24 hours. It is still holding above $230 which is critical to achieving $250 high in the coming weeks.
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