As the crypto market witnesses a downfall to $2.4 trillion, the liquidations in the market cap rise up to nearly $1.5 billion. Amid the increased fear in the market, Bitcoin momentarily breaks under the $75,000 mark, recording a 24-hour low at $74,446.
Bitcoin is back at a trading price of $77,480. Will this short-term bounce back after the major crashing move propel Bitcoin back above the $80,000 mark? Let’s find out.
BTC Price Analysis: Expert Insights
In the 4-hour price chart, the Ethereum price trend showcases a bearish breakdown of the consolidation range. The lower support for the consolidation range stood at $78,572.
The massive crash has dropped the Bitcoin price close to the S1 pivot support level at $74,000. The consolidation range breakdown quickly resulted in a stretch in the lower Bollinger band, signaling the start of a new bearish move.
However, with a quick V-shaped reversal slightly before the S1 pivot support level, the result signals a potential retest. This quick retest brings a short-term relief but also warns of a post-retest reversal.
In case of a post-retest reversal, the downside risk will significantly increase, bringing the S2 pivot support level in the bearish radar. The S2 pivot level is priced at $69,804.
Hence, the short-term price action analysis warns of a steep correction below the $70,000 psychological support. Amid the declining prices, the 20-day SMA line acting as the central line of the Bollinger band witnesses a significant downtick.
This is aligned with the short-term increase in supply pressure. However, on the optimistic side, a potential bounce-back crossing above the broken level of $78,572 could increase the chances of Bitcoin reclaiming the $80,000 mark.
In such a case, the S2 pivot level at $81,374 will act as the immediate resistance level. This S2 pivot line coincides with the 20-day SMA line.
Bitcoin Futures Signal Downside Slowdown
With the massive surge in supply pressure, the open-interest-weighted funding rate remains positive at 0.0054%. However, the increased volatility has resulted in a major shakeout of crypto traders.
This has dropped the Bitcoin open interest by 2.84%, dropping it to $51.83 billion. Over the past 24 hours, the Bitcoin liquidations rose to $486.82 million.
Out of the total 24-hour liquidations, the long liquidations account for $412.87 million, while the short-side liquidations account for $73.95 million. Despite the major crash, the optimism of top traders over centralized exchanges like Binance and OKX has witnessed a significant surge.
This is highlighted by the long-to-short ratio of top traders by accounts and positions, ranging from 1.75 to 2.32.
Glassnode Spots Crucial Support at $74k
Amid the increasing volatility, Glassnode highlights the recent support for Bitcoin, forming at $74,000. The on-chain platform highlights this with the major supply cluster below $80,000, with over 50k BTC at $74.2k.
Over the past five months, the crucial level has been mostly held by investors, steadily raising the average cost basis until March 10. However, the on-chain platform also highlights a downside.
The next crucial substantial support is at $69.9k. This is the range of holding $68k BTC. The Glassnode also highlights the single largest level within the range of $74,000 to $70,000 at $71.6k, holding 41k BTC. The overall range holds 175k BTC.
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