Crypto Daily - Bitcoin continues to surprise to the downside. The $BTC price lost more than $6,000 in the space of 48 hours, after being rejected from $65,000. The high volatility triggered more than $300 million in liquidations across the crypto market, mostly on long positions.
Just when you thought it was safe to go long …
Just when you thought it was safe to go long, with macro indicators generally pointing to the upside, the $BTC price dumped sharply once again, lopping 9.6% off of the price in the space of only 48 hours. It may not have helped that the Spot Bitcoin ETFs experienced a 2k Bitcoin outflow on Tuesday, which interrupted a previous 8 straight days of inflows.
Does a bounce come here?
The short term chart shows that the $BTC price dropped through the upward trend line on Tuesday, and then plummeted like a stone to touch the very important horizontal support at $58,000. The decision to be made now is whether this is where a bounce takes place, or if the price continues to plummet down to the 0.618 fibonacci at $55,000.
Crucial weekly close could be bullish
Zooming right out into the weekly time frame shows that the major support level at $58,000 is holding firm. This level was also important support and resistance during the last 2021/2022 bull market. Therefore it might be expected that a bounce takes place from here.
The short term Stochastic RSIs are all currently bottoming, and will provide upside momentum for the $BTC price soon. The weekly Stochastic RSI, as seen on the chart above, is still projecting a cross up, while the Relative Strength Index (RSI), at the bottom of the chart, is currently giving cause for concern, given that the indicator line is showing a rejection from the downtrend.
That said, the weekly close on Sunday will provide a major clue as to whether these indicators end in a bullish or bearish signal. If the bounce from the $58,000 horizontal level is successful, this signal is more likely to be bullish.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
This content was originally published on Crypto Daily
