Markets
Bitcoin Up From Its Corrective Phase? Here’s What You Need to Know Before You Jump In
Bitcoin Price is rolling up! Cryptocurrency markets are seeing a sigh of relief as bulls seem to have regained their dominance. Additionally, a couple of positive stories are also fueling the optimism around the token, which had turned into fear over the past weekend. Meanwhile, fresh rounds of transfers of around 3,100 BTC from the German government-linked address to Kraken and BitStamp have emerged.
It was assumed that this would create another round of fear in the markets, but Bitcoin managed to absorb all the selling with force, as the demand for the token was growing significantly. Furthermore, whales also seem to have used the opportunity to accumulate at a lower price, as BTC Spot ETFs volume rose again above 294 million.
With this, it is assumed that the BTC price has completed its correction and, therefore, it may start testing the upper targets, recovering the lost levels in the coming days. However, the current trading setup shows a small probability of going through a correction phase.
On a broader perspective, BTC price has broken below the crucial support zone, which is supposed to have revived the bullish strength. However, the technicals do not support the overall bullish narrative. Mainly because the RSI is cemented lower, showing minor bounces, while the OBV is still clinging to the support, validating the continuation of the downtrend. Therefore, if BTC price fails to enter the support-turned-resistance zone between $57,412 and $58,381 before the CPI rates are out, then a fresh downtrend could drag the levels below $53,000.
Despite the bearish clouds hovering over cryptocurrencies, the BTC price remains bullish in the short term. This means that the price that started the trading day on a cloud of bullish notes remains bullish until the end of the trading day and may even break above $58,000, which may attract further bearish attention. However, the upcoming weekend may have an impact on the coin as a rise above $58,500 may invalidate the bearish thesis while a drop below $54,800 may revoke the bearish activities.
See also: Best Cryptocurrency to Buy Now as Market Crash Hits Bottom