- It’s been wild past 24 hours for Bitcoin, with the cryptocurrency benchmark seeing one of the deepest sales it has seen in quite some time yesterday
- Following a slow slowdown that had occurred in the past few days, BTC eventually saw a capitulatory sale that sent its price plummeting to lows of nearly $ 28,000
- At this point, many investors were clearly selling panic, as funding for rocket short positions and long side liquidation began to pile up
- However, this happened to mark the bottom, as BTC saw a huge rebound from these lows
- One analyst notes that there is still a critical level that needs to be firmly broken above before BTC can see a continuation of its uptrend
Bitcoin and the entire cryptocurrency market have been caught in the throes of some wild volatility in the past few days.
Fortunately for bulls, BTC’s overnight rebound appears to be the “v-shape” recovery that many analysts have said is needed for the crypto to form a long-term bottom.
Assuming this rebound extends further, it could confirm macro inversion and help lead to much further upside. There is one level, however, that must be firmly flipped to support first.
Bitcoin Shows Signs of Strength following Overnight Bounce
Massive sales yesterday were quite intense and, at the time, seemed like it could signal a macro reversal of the Bitcoin uptrend.
However, Bitcoin has rebounded since then, currently trading up 5% at its current price of $ 32,270 – marking a notable surge of lows of nearly $ 28,000.
Where market trends in the medium term should depend largely on whether or not bulls can maintain this momentum and continue to print a textbook “v-shape” recovery pattern.
BTC’s Not Out of the Woods Again – Here’s Why
Bitcoin still has a key level to break above it and flip into support before it’s out of the woods completely.
One analyst talked about this in a recent tweet, explaining that the first “control point” he is watching closely is $ 34,900.
“POC at 34900 is currently the first area of interest. Then we will reevaluate. ”
Image Courtesy of Byzantine General. Source: BTCUSD on TradingView.
The next few days should offer insights into the longevity and significance of the overnight rebound or whether or not it will be followed by persistent disadvantage.
Featured image from Unsplash. Charts from TradingView.