Bitcoin Price Rally Maintains a Downtrend!
Bitcoin price rally as it smashed its ATH above $61K, maintained a downtrend after getting rejected multiple times close to $60K. The rejections at certain levels dipped within the descending channel initially at $58K, later at $55K and at $53K. If the fake breakout due to the Tesla announcement is ignored, BTC price lies within a descending parallel channel.
Therefore the question that arises is whether BTC price is unclear to determine the further price movements? If yes what might be the reasons behind this chaos on the previous trading day?
- The previous trading day, witnessed a steep bitcoin plunge draining out nearly 11% of the price. According to Glassnode, nearly 215,331 BTC has been liquidated which is the highest in the past 3 years.
- Out of that, nearly 29824 BTC worth $1.5billion has been withdrawn from exchanges which are the largest since November 2019. 150,121 BTC worth $7.8 billion has been moved out of Coinbase alone in the last 3 months.
- Another major reason is the expiration of more than $5 billion Bitcoin options which might have caused a huge volatile environment.
Will the Bearish Trend Flip Into Bullish?
The bitcoin price is currently on the verge to rebound the 50-day MA on the daily chart. Previously when the price has touched the MA at $29,391, the price jumped remarkably by more than 100% to reach $58,591. Currently, the price is yet again pat the MA line at $51,207 and hence a massive rebound may be expected.
On the other hand, each time the CME Bitcoin futures expired, the price tends to fall into a deep well, yet bounce back with great numbers. The current upcoming surge may lead to a price above $60K also.
Moreover, recent advancements as mentioned by analyst Lark Davis, many institutions have come forwards to apply for Bitcoin ETF.
The gold price had risen magnificently of about 473.15% from just $300 per ounce to more than $1900. Therefore a similar bitcoin price rally is expected if any one of the institutions gets the approval for Bitcoin ETF.
Interesting Read: Top Reasons Why Bitcoin Price Rally Is Still Bullish!