Bitcoin suffers 7% retracement following surge above $9,000

Bitcoin is back trading between the $8,400 level of support and $8,830 level of resistance following a dramatic weekend of price action

Bitcoin momentarily traded above $9,000 over the weekend before a humbling correction that saw price eventually bounce at the $8,450 level of support.

Sunday morning presented a nervous moment for Bitcoin bulls as the world’s largest cryptocurrency began to fall at an alarming rate, with a 7% move to the downside playing out within the space of one minute.

However, since then, Bitcoin has rebounded with a 2.5% bounce to the upside, which reiterates the bullish sentiment surrounding the digital asset ahead of this summer’s halving event.

The halving will see block rewards for miners slashed in half, which means the cost of mining will double. The value of Bitcoin will therefore need to surge in order for the industry to stay profitable.

However, it’s worth noting that Litecoin underwent its own block reward halving in 2019, but price struggled to breach its previous yearly high.

But as with any major event like this, the anticipation causes an initial rally as traders attempt to price in the event well in advance.

If Bitcoin begins to rally back above $9,000 towards the $10,000 mark, it would undoubtedly pique the interest of retail investors who may believe it could rally past last June’s high of $14,000.

From a technical perspective, the $8,830 level remains a key point of resistance, while the $8,450 level will likely support price if it begins to slump back to the downside.

For more news, guides, and cryptocurrency analysis, click here.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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