After a series of days trapped below the $30K line, Bitcoin finally showed a clear trend, albeit not the one the bulls expected. Bitcoin slipped below its monthly support of $29,000 and did not stop there, instead continuing to fall to the $28,800 mark. This severe bearish swing led to a massive market selloff today. However, analysts see this as an excellent opportunity to go long on the Bitcoin price, with the goal of pushing it back to $30K.
Bitcoin Registers Mass Liquidation
Bitcoin experienced a crash today following a Wall Street Journal report that Binance CEO Changpeng “CZ” Zhao allegedly indicated in a private discussion that affiliates of the cryptocurrency exchange had engaged in laundering operations a few years ago. Furthermore, warnings from Chinese politicians of a challenging economic recovery, without the promise of substantial stimulus, also contributed to the decline.
Additionally, Bitcoin was in the spotlight as funds that track BTC reported $13 million worth of outflows. Bitcoin-slicing products, meanwhile, continued to see outflows for the 13th week in a row, totaling $5.5 million. According to a report from CoinShares today, investors are starting to prefer Ethereum over Bitcoin, as evidenced by the $6.6 million inflows into Ethereum.
According to Coinglass’s full liquidation chart, there was a significant rise today following the drop in BTC price to $29K. Both short and call holders experienced strong liquidations, but long positions were hit the hardest, with the total amount exceeding $41 million.
By contrast, the sell positions experienced a smaller decline on liquidation to $3 million. However, it is worth noting that sellers had previously liquidated $10 million worth of holdings profitably when the BTC price nearly reached $30.1K.
What’s next for the BTC price?
Bitcoin has been trading steadily below the 20-day exponential moving average and created more distance today by dipping below the $29.5K level. However, one silver lining is that the bears failed to push the price below $28,700.
This indicates that the bulls are still in the game, buying on every small dip. The repeated inability of the bears to lower the price of BTC could attract buyers.
If the price breaks above the 20-day EMA, it could rally towards the immediate resistance of $30,200. A push above the $30,500 zone could pave the way for a potential rally to $31,800.
Conversely, if the price turns down and falls below $28.3K, it would be a sign of an increase in bearish sentiment. So, the price could fall towards the support level of $26,700.
The moving averages on the four hour chart are declining and the RSI has fallen into the oversold region, suggesting that the price may continue to witness volatility.
This post Bitcoin Enters $28K Region Due To Low Buying Pressure – Will Bulls Take Over Now?
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