Ever since while the Bitcoin price ranged in between $58500 to $59000, a trend reversal beyond the ATH was almost confirmed. Yet the asset flipped completely in the past couple of hours and broke the strong support levels at $55700. Currently, BTC price is attempting hard to sustain above $54000 but the bears are all set to drag the price below $53000. However, with selling pressure being mounting, whether is there any reason for panic?
It appears that the traders are just waiting for yet another opportunity to enter every drop provides a good buy zone. And hence the reserves within the exchanges are dropping to new lows. With the balances on exchanges reaching new lows, a 7-digit BTC price is pre-programmed as predicted by a popular analyst, Lark Davis. However huge liquidations may be the major reason behind the extreme sell-off.
Not only Bitcoin, but most of the cryptos have also all plunged after being rejected from their respective resistance levels. However, some relate the plunge with the new rounds of Covid updates. But the other hand, $3 billion worth of options expired just a few minutes before. Despite the fact that options do expire frequently and the market does not react to such an extent, but the reason may not be completely neglected.
Currently, the bull appears pretty much weak as they are unable to give a decent fight to the bears. The downtrend is expected to continue until it tests the next support levels around $53965. The star crypto needs to flip from these levels and regain positions above $55,000 in order to stay above $50K. Else the lower levels close to $48000 may be on the horizon for the BTC price.
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