BTC 24 Hour Rollercoaster Might Have Shifted Sentiment
Bitcoin has been on a rollercoaster trading period this 24-hours after the cryptocurrency dropped by a steep 16% yesterday from a high of $33,350 to a low of $28,800. By the end of the day, the bulls had regrouped and pushed BTC back above $30,000 to close the daily candle above $31,000.
It was a quick recovery, and Bitcoin only spent a total of 2 hours beneath the $30,000 level in total. In fact, BTC produced one of the most robust “V-Shaped” recoveries on the 15-minute charts.
BTCUSD
Taking a look at the daily chart above, we can clearly see that BTC had been in a short-term downtrend over the past week since failing to capitalize on the break above $40,000. It dropped lower throughout the week until eventually breaking beneath $35,000 on Monday.
Yesterday, BTC capitulated beneath $30,000 for the first time since late January 2021. The cryptocurrency continued to slide beneath $30,000 until support was finally found around $28,800, which was provided by the late-January lows.
Looking at the 4-HR chart in the post, we can see that BTC was trading inside a descending price channel over the past week. What is interesting is that BTC never closed a 4HR candle beneath the $30,000 level. In fact, it managed to hold short term support at $31,155, provided by a .886 Fibonacci Retracement level.
The huge rejection spike toward the downside is quite promising. It suggests that buyers are waiting and ready to buy up any dips beneath the $30,000. It could be expected that a similar scenario would occur if BTC was to head toward these levels again.
After rebounding back above $30,000, BTC continued higher and went on to break the upper boundary of the descending price channel, making the end of the short term downtrend. It is now battling resistance around $34,000.
It was a quick recovery, and Bitcoin only spent a total of 2 hours beneath the $30,000 level in total. In fact, BTC produced one of the most robust “V-Shaped” recoveries on the 15-minute charts.
BTCUSDTaking a look at the daily chart above, we can clearly see that BTC had been in a short-term downtrend over the past week since failing to capitalize on the break above $40,000. It dropped lower throughout the week until eventually breaking beneath $35,000 on Monday.
Yesterday, BTC capitulated beneath $30,000 for the first time since late January 2021. The cryptocurrency continued to slide beneath $30,000 until support was finally found around $28,800, which was provided by the late-January lows.
Looking at the 4-HR chart in the post, we can see that BTC was trading inside a descending price channel over the past week. What is interesting is that BTC never closed a 4HR candle beneath the $30,000 level. In fact, it managed to hold short term support at $31,155, provided by a .886 Fibonacci Retracement level.
The huge rejection spike toward the downside is quite promising. It suggests that buyers are waiting and ready to buy up any dips beneath the $30,000. It could be expected that a similar scenario would occur if BTC was to head toward these levels again.
After rebounding back above $30,000, BTC continued higher and went on to break the upper boundary of the descending price channel, making the end of the short term downtrend. It is now battling resistance around $34,000.
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