More than $ 102 million in long positions settled in BitMEX, pushing Bitcoin into another period of turmoil. Bitcoin failed to convert the $ 10.000 resistance level into support, causing a $ 1.000 drop in the last few hours. But the bullish price action is not out of the question yet.
The price of Bitcoin is going crazy. The flagship cryptocurrency was able to surge by more than 10% yesterday and surpass the $ 10.000 threshold. However, BTC recently took a brutal $ 1.000 nosedive that wiped out these gains in a matter of five minutes. Yesterday, Crypto Briefing warned readers that investors were becoming overwhelmingly optimistic about the recent price action. Sentiment sent the Crypto Index Fear and greed to “greed,” which is a negative sign. But few predicted that the market would respond with a massive bearish push.
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Nik Patel, the best-selling author of "An Altcoin Trader's Handbook", reported that on Coinbase, Bifinext, Bitstamp, Bybit and FTX that BTC reached a low between $ 9.150 and $ 9.320. However, on BitMEX, it was more than $ 102 million in long positions. liquidated, pushing BTC to $ 8.600. Despite the sudden downward movement, different technical indices show that all has not yet been lost. The lower bound of an ascending parallel channel, which has contained Bitcoin since Black Thursday in March, appears to have prevented a steeper decline.
If this barrier continues, the price history of the last three months may repeat. The flagship cryptocurrency could bounce off this support level back to the middle or towards the upper limit of the channel at $ 12.500.
The Fibonacci Retracement Indicator adds credibility to this outlook. According to this technical index, Bitcoin can consolidate between $ 9,100 and $ 10,500 for an extended time before providing a clear signal of where it is going next. Breaking below the support provided by the 78.6% Fibonacci retracement level could jeopardize the bullish view and cause a steeper decline. In such circumstances, the next critical support areas to pay attention to are the 61.8% and 50% Fibonacci retracement levels. These support barriers are located at $ 8.000 and $ 7.300, respectively.
On the other hand, an increase in buying pressure behind BTC allowing it to break through the $ 10.500 resistance could propel it towards new yearly highs. With all these factors in mind, it is crucial to understand the support and resistance levels mentioned above to capture the gains from the next major price move.
