June 2 Technical Analysis: Bitcoin (BTC) Could Take a 7.5% Drop?

The king of cryptos continues its corrective moves as markets prepare for the NFP release. At this rate, bitcoin (BTC) could take a significant drop towards $25,400.

Bitcoin (BTC) reverses weekend gains.

The crypto market had a positive weekend, mainly thanks to BTC which recorded a rise of 6.6%. However, a bearish wave hit this asset, causing its value to fall by 6%. This trend deepened yesterday and bitcoin (BTC) completely reversed its weekend gains. Right now, this crypto is trading around $27,000 and is at risk of falling further.

Indeed, there is a break out of the weekend low earlier today. This could indicate a continuation of the week’s trend as the buyers failed to sustain the bullish momentum. If confirmed, bitcoin (BTC) could take a pretty big drop, with a target around the $25,400 support. But before that, there could be high volatility with the release of the NFP in the United States. In this case, the price could recover higher buy orders before falling.

Bitcoin suffer decline
Bitcoin (BTC) candlestick chart, H4 scale – source: TradingView

Levels to watch before NFP

The weekend promises to be eventful for bitcoin (BTC) with the publication of monthly figures on jobs created in the non-agricultural sector in the United States. As mentioned earlier, large fluctuations in the price of BTC can be expected. Caution is therefore advised, but there are still levels to monitor.

First, there is the area between $27,500 and $27,650 which could act as resistance. This area sits between the 61.8% and 78.6% Fibonacci levels of Wednesday’s range. In addition, there is an “imbalance” around this area, which makes it an interesting selling area.

Next, the critical support at $25,400 should not be overlooked. In the event of a drop, bitcoin (BTC) could come back to test this crucial level. It could therefore be an interesting target for a bearish position.

Admission: $27,489;

Stop: $27,978;

Goal: $25,400.

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