The Asian-trading day began with the huge crypto crash fueled by a major drop in Bitcoin prices. The dominant crypto had played multiple times along the $41K price zone and constantly flipped each time. And hence it was believed that the BTC price may recover soon, however, the on-chain metrics and the technicals always pointed towards a significant bearish trend. Therefore, as a result, BTC prices plummeted hard to slice through the support levels and find new support levels to calm down a bit.
While many believe BTC may recover hard as it is healthily consolidating above the strong support levels, it is quite evident that Bitcoin was trending within a bear market ever since it smashed its ATH at $69K. Currently, the asset is more than 44% down from its highs and moreover has shed more than $2000 from the previous day’s close. And this is not a good sign of a healthy consolidation or accumulation.
Will Bitcoin Price Rebound or Drop Below $35K?
Despite the bearish cartel being pretty strong at the moment, a slight rebound cannot be completely nullified. When will the BTC price attempt a rebound? Will the flip escort the price above $40,000? Let’s Check!
The Bitcoin price no doubt is moving towards the next support levels, yet the probabilities of an interim relief also surface. Two main indicators point out towards the possible flip in the next 4 to 6 hours.
- Relative Strength Index(RSI)
The RSI, which indicates the overbought and oversold strategies, has plunged beyond 30 levels pointing towards the overbought levels. It has to be noted that the BTC has dropped below 30 very few times in recent history. Previously as it visited the oversold levels, it halted, rebounded a little, and consolidated within the lower bands for a pretty long time before initiating a jump towards the ATH. And hence a similar trend could be expected now, no doubt there is no divergence clearly visible, but may happen shortly.
Bollinger bands showcase the market trend of the price and its volatility. Currently, the price sliced through the middle bands or the 20-day SMA to hit the oversold regions. Now as per the Bollinger band strategy, the asset is due for a bounce back. No doubt the bounce could be a minor one, but it could halt the bearish trend and offer a chance for the bulls to manage the trembled situation
Collectively, the bearish trend or to be specific the market crashes are part of the Bitcoin bull run. The Bitcoin(BTC) price tends to move according to the market sentiments, possessing notable volatility within the market. And hence it is important to understand the trend and not fall into the FUD trap set by the whales.