The price of Bitcoin is currently facing a correction. Which causes the crypto asset to drop by 20% in the last 24-48 hours. This decline resulted in a liquidation of more than $ 2 billion. Bitcoin is testing the support at $ 33,900 while also being in limbo.
Bitcoin 4 hour chart
The 4-hour chart shows that the recent decline came after Bitcoin broke support at $ 38,633. Since this breach, sellers have managed to push bitcoin beyond the short-lived EMA [orange] and the mid-length EMA [purple]. Selling pressure has eased, but the price uses long lasting EMA [blue] as a support. A rebound from this level is however not guaranteed.
Considering the resistance of overheads, it is not entirely unlikely for buyers to make it through short and medium length EMAs. However, a rejection here would bring the price down.
The RSI indicator seems to indicate the rebound just before the oversold zone. This confirms the buying pressure at the current support level. Moreover, the bullish divergence between the price and the RSI shows that the buyers could maintain this level. They might even push the price higher.
OBV does not show a significant drop in volume during the recent crash. Which indicates that recovery is likely to be rapid.
MACD indicator shows rapid line decline [blue] below zero level. The same is seen with the stochastic indicator which has repeatedly failed in the oversold zone, where it still stands.
While it looks bearish, the surge in the price of bitcoin over the past few days is not just FOMO but supported by real investors pumping out money. Therefore, even with the parabolic rise in prices, this recent crash is just a correction with prices set to rise without a doubt.
Well done, you’ve read this entire article!
To congratulate you, we are going to offer you our free method of investing in cryptocurrencies simply and automatically with the objective of generating regular income while protecting your capital as much as possible.
To access your giveaway, click here and register: https://www.fructify.io/actucrypto.