- It’s been a wild 24 hour past for Bitcoin, and the benchmark cryptocurrency had one of the most intense sell-offs it has seen in quite a while yesterday
- After a slow decline that had taken place over the past few days, BTC finally saw a capitulatory sell-off that dropped the price to lows of nearly $ 28,000
- At this point, many investors were clearly panicking as funding from short positions skyrocketed and long-term liquidation began to pile up
- However, this marked the bottom as BTC has since seen a massive rebound from those lows
- One analyst notes that there is still a critical level that needs to be firmly broken before BTC can see its uptrend continue
Bitcoin and the entire cryptocurrency market have been hit by wild volatility in the past few days.
Fortunately for the bulls, BTC’s overnight rebound appears to be the “V-shaped” rebound that many analysts believe is required for crypto to form a long-term bottom.
Assuming that this upswing continues, this could confirm a macro reversal and lead to a much wider uptrend. However, there is one level that needs to be firmly flipped over to support first.
Bitcoin is showing signs of strength overnight after rebounding
Yesterday’s massive sell-off was quite intense and at the time it appeared to mark a macroeconomic reversal in Bitcoin’s uptrend.
However, since then Bitcoin has rebounded and is currently trading 5% at its current price of $ 32,270. This is a notable surge from lows of nearly $ 28,000.
Where the market trends should depend on over the medium term will largely depend on whether bulls can maintain this momentum and continue to print a “V-shaped” recovery pattern for textbooks.
BTC isn’t out of the woods yet – here’s why
Bitcoin still has a key level to overcome before it is completely out of the woods.
An analyst spoke about it in a recent tweet, stating that the first “checkpoint” he is closely monitoring is $ 34,900.
“POC at 34900 is currently the first area of interest. Then we will re-evaluate. “
Image Courtesy of Byzantine General. Source: BTCUSD on TradingView.
The coming days should provide insights into the longevity and importance of the rebound overnight, or whether or not it will be followed by another downtrend.
Featured image from Unsplash. Charts from TradingView.