Bitcoin (BTC) fell below $33,000 support on July 8 as a trusted trading range risked getting invalidated.
BTC/USD 1-minute candle chart (Bitstamp). Source: TradingViewTrader: $31,000 retest next for BTC
The move followed an overnight retracement from around $35,000, with Bitcoin failing to crack crucial resistance.
With that, Bitcoin risks invalidating a bullish scenario which involves it entering the next stage of a Wyckoff distribution with potential to exit to the upside — around $39,000.
“Losing $33K range and I’m looking at $31-31.4K,” popular trader Michaël van de Poppe warned just before the dip began.
At the time of writing, volatility still meant that a recovery back within the range was possible, with BTC/USD circling $32,500 after local lows of $32,490 on Bitstamp.
BTC/USD scenario chart as of July 8. Source: Michaël van de Poppe/ TwitterBitfinex shorts spike 160% in hours
The latest price action came hours after fresh selling