Bitcoin recovers above $9,500: can it break resistance at $10,500?

Bitcoin price is up over 4% as buyers recover from yesterday’s dip to $8,900

Bitcoin broke below a crucial support level on Monday morning, before an afternoon rally, correlated to the US stock market, saw buyers recoup the losses.

As US futures markets posted an average of 3% gains on the day, Bitcoin rallied above $9k following a drop to lows of $8,949. The breakout to the top of the range continued over the past 24 hours to see the pioneer crypto hit a high of $9,600, to have an impressive $700 rebound on the day.

According to popular crypto analyst Michael van de Poppe, Bitcoin recovering above $9k puts it on track to hit the coveted $10,500 level. The analyst previously tweeted that BTC/USD was set to reverse to $9,300 before retracting to the support zone at $9,000.

According to the analyst, more buyers’ holding support above $9k are needed if bulls are to mount a move for prices past the stubborn resistance at $10.5k.

The jump to $9.6k thus gives Bitcoin the cushion to consolidate at the top of the $8,900-$9,000 range. Poppe believes that this will bring the “price back in range,” opening it up nicely for a retest of $10,500.

Bitcoin technical picture

The reverse from a monthly low of $8,949 happened on increased buying volume as investors rushed to buy the dip. However, although an uptrend could materialise, BTC/USD may correct lower once prices hit near $9,800.

Support around $9,300-$9,000 appears secure but selling pressure will resurface if buyers don’t hold support at current levels above $9,500.

Bitcoin recovers above $9,500: can it break resistance at $10,500? 1
Fig 1: BTC/USD 4-hour chart. Source: TradingView

The 4-hour charts show that Bitcoin’s previous climb to the $9,700 – $9,880 range was met with major resistance on June 11. The crypto is likely to hit a similar wall on the upside if buyers look to break even.

Bitcoin options open interest

Meanwhile, around $930 million in open interest on Bitcoin options contracts is set to expire on June 26, a scenario some traders are pointing to as a factor that could cap gains in the short-term.

According to data platform Skew, over 100,000 Bitcoin options contracts represent almost 70% of total open interest, with their expiry coming along as $10k remains the cap to recent upsides. Interest has also surged 100% since April, topping $1.3 billion.

A look at the derivatives data shows open interest is highest at $9,500, which indicates that investors believe that cryptocurrency is set to settle in a range around this level.

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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin49,181 0.78 % 1.70 % 14.08 %
Ethereum4,135.6 1.43 % 0.65 % 3.60 %
Binance Coin572.53 1.09 % 4.02 % 6.36 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana190.07 3.37 % 1.87 % 5.19 %
Cardano1.340 1.18 % 0.23 % 15.95 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
XRP0.7944 0.96 % 0.21 % 17.83 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Terra65.13 0.90 % 5.40 % 30.34 %

Bitcoin (BTC) $ 48,927.00
Ethereum (ETH) $ 4,121.95
Binance Coin (BNB) $ 568.12
Tether (USDT) $ 1.00
Solana (SOL) $ 187.67
Cardano (ADA) $ 1.33
USD Coin (USDC) $ 1.00
XRP (XRP) $ 0.79172
Polkadot (DOT) $ 26.95
Terra (LUNA) $ 65.09