Bitcoin sees massive rally overnight – but bulls not yet in control
- It’s been a wild 24 hours for Bitcoin as the benchmark cryptocurrency saw one of the most intense sell-offs in recent memory yesterday.
- After a slow grind lower over the past few days, BTC finally saw a capitulating sell-off that sent its price plummeting to lows near $28,000.
- At this point, many investors were clearly in a panic sell-off as funding for short positions skyrocketed and liquidation of long positions began to pile up.
- However, this marked the bottom as BTC has since seen a massive rebound from these lows.
- One analyst notes that there is still a crucial level that needs to be significantly surpassed before BTC can see a continuation of its uptrend.
Bitcoin and the entire cryptocurrency market have been caught in the clutches of wild volatility in recent days.
Fortunately for the bulls, BTC’s overnight rally appears to be the „V-shaped“ recovery that many analysts have said is necessary for the Bitcoin Trader cryptocurrency to form a long-term bottom.
Assuming this rally extends further, it could confirm a macro reversal and lead to a significant further uptrend. However, there is one level that needs to be firmly reversed to support first.
Bitcoin shows signs of strength after overnight rally
Yesterday’s massive sell-off was quite violent and seemed to mark a macro reversal of Bitcoin’s uptrend at the time.
Since then, however, Bitcoin (Go to Plus500 Bitcoin buying guide) has recovered and is currently trading up 5% at its current price of $32,900 – a remarkable rise from lows near $28,000.
Where the market goes in the medium term is likely to depend largely on whether the bulls can maintain this momentum and continue to print a textbook „V-shaped“ recovery pattern.
This is why BTC is not out of the woods yet
Bitcoin still has a key level to break through before it is completely out of the woods.
One analyst writes about this in a tweet, explaining that the first „point of control“ he is watching closely is $34,900.