- It has been a wild past 24 hours for Bitcoin, with the benchmark cryptocurrency seeing one of the most intense selloffs it has seen in quite some time yesterday
- Following a slow grind lower that had taken place throughout the past few days, BTC eventually saw a capitulatory selloff that sent its price plunging to lows of nearly $28,000
- At this point, many investors were clearly panic selling, as funding for short positions rocketing and long-sided liquidation began stacking
- However, this happened to mark the bottom, as BTC has since seen a massive rebound from these lows
- One analyst is noting that there’s still a crucial level that needs to be firmly broken above before BTC can see a continuation of its uptrend
Bitcoin and the entire cryptocurrency market have been caught in the throes of some wild volatility throughout the past few days.
Fortunately for bulls, BTC’s overnight rebound appears to be the “v-shaped” recovery that many analysts have said is needed for the crypto to form a long-term bottom.
Assuming that this rebound extends further, it could confirm a macro reversal and help lead to significantly further upside. There is one level, however, that must be firmly flipped to support first.
Bitcoin Shows Signs of Strength Following Overnight Rebound
Yesterday’s massive selloff was quite intense and, at the time, seemed like it could mark a macro reversal of Bitcoin’s uptrend.
However, Bitcoin has rebounded since, currently trading up 5% at its current price of $32,270 – marking a notable surge from lows of nearly $28,000.
Where the market trends in the mid-term should depend largely on whether or not bulls can maintain this momentum and continue printing a textbook “v-shaped” recovery pattern.
BTC’s Not Out of the Woods Yet – Here’s Why
Bitcoin still has a key level to break above and flip into support before it is fully out of the woods.
One analyst spoke about this in a recent tweet, explaining that the first “point of control” he is closely watching is $34,900.
“POC at 34900 is first area of interest at the moment. Then we’ll reevaluate.”
Image Courtesy of Byzantine General. Source: BTCUSD on TradingView.
The coming few days should offer insights into the longevity and significance of the overnight rebound or whether or not it will be followed by continued downside.
Featured image from Unsplash. Charts from TradingView.
