BTC fell by 13% of ATH, is the bullish mood intact?

BTC fell by 13% of ATH, is the bullish mood intact?

Bitcoin's price has gone through a lot in the past few days. Last Wednesday, exactly a week ago, the cryptocurrency reached a new all -time high at around $ 67,000 (on Bitstamp).

Now BTC is traded at around $ 59,000 after it has fallen to only $ 58,000 since its high, which corresponds to a decline of 13%. It is important to examine what caused the correction and whether the bullish mood remains intact. In the following we summarize what happened today, what is its cause and what because of the Twitter entry The prominent Bitcoin analyst-Daniel Joe.

What led to the price of Bitcoin corrected?

As Daniel repeatedly mentioned here at Cryptopotato in the past few days, the BTC Prize was quite circled. Only yesterday we have outlined that the current market structure in relation to the average leverage ratio of November 2020 is very similar.

At that time, the course fell by 16%after the Leverage Ratio had reached its maximum at 0.20. Yesterday the metric was 0.19-a clear sign that the market becomes too confident and a flush-out may be due.

Perhaps something expected, the price corrected and fell less than $ 60,000 to achieve the support of $ 58.3,000 that has been held so far. Of course, it is important to see a conclusion about it for further confirmation.

We also saw an inflow of 1,500 BTC into the spot exchanges shortly before the sweater, and the merchants at 60,000 USD was broken, which led to a cascade from liquidations to $ 58.1000-today's deep stand at the time of this letter. Overall, a little less than $ 1 billion in lit positions were wiped off.

Chart after tradingview

A technical outlook

As mentioned above, the price of Bitcoin has decreased to technical support by $ 58.3,000 before it is $ 59,000 at the time of writing this article. A daily closure of over $ 58.3,000 would be the first positive step towards relaxation, and it is important to consider this level as the most direct support. A final course of over 60,000 would be even better and also confirms the support at this level.

However, the leverage ratio remains high, even if it has decreased slightly, as can be seen in the following graphic:

Cryptoquant diagram

This means that it is important to stay careful, since further liquidations may still be in sight. In the event that there are other disadvantages, the levels to be taken into account must be taken into account 58.3,000, 57.1,000, 55,000 and $ 53,000.

The hourly bullish divergence was also invalidated, since BTC Intraday is less than $ 60,000 and lower lows are reached. For this reason, it is important to reclaim $ 60,000 as soon as possible so that the bulls try to get back to the driver's seat at short notice.

On the other hand, it is easy to see that the financing rates are neutral again, but vigilance is offered because further liquidations could be due.

Today's events have not harmed the entire market structure and the fundamental data from Bitcoin clearly show that long -term development remains bullish. After a short-term market cleanup, this looks with a likely low between $ 58.3,000 and $ 53,000.

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