Bitcoin continues its surprising decline. $BTC price dropped more than $6,000 in 48 hours, having previously fallen below $65,000. High volatility triggered over $300 million in liquidations across the cryptocurrency market, mostly in long positions.
Just when you thought it was safe to go on a long drive…
Just when you thought it was safe to long and macro indicators were broadly pointing to the upside, $BTC price plunged again, losing 9.6% in just 48 hours. It probably didn’t help that the spot Bitcoin ETF saw 2,000 BTC outflows on Tuesday, interrupting a previous 8-day streak of inflows.
Will the rebound come here?
The short-term chart shows that $BTC price broke below the ascending trendline on Tuesday and then plunged like a rock to hit the very important horizontal support at $59,000. The decision to be made now is whether this is where the bounce happens or the price continues to plummet to the 0.618 Fib at $55,000.
Key weekly close could be positive
Zooming in to the weekly timeframe, we can see that the major support level of $59,000 remains strong. This level was also an important support and resistance level during the 2021/2022 bull run. Therefore, a rebound can be expected from here.
The short-term Stochastic RSI has now bottomed out and will soon provide upward momentum to the price of $BTC As shown in the above chart, the weekly Stochastic RSI is still predicting a crossover to the upside, while the Relative Strength Index (RSI) at the bottom of the chart is currently worrying as the indicator lines show a rejection of the downside trend.
Nonetheless, Sunday’s weekly close will provide important clues as to whether these indicators ultimately signal a bullish or bearish signal. If a bounce off the $59,000 level is successful, the signal is more likely to be bullish.
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