Bitcoin has seen an immense correction in the past few days.
At the local lows, the leading cryptocurrency was trading at $ 9,800. BTC is currently trading for around $ 10,200 as buyers have re-entered.
In the past few days, futures contracts valued at millions of dollars have been liquidated; According to Skew.com, long positions worth $ 350 million on Binance have been liquidated in the past two days alone.
Bitcoin is predestined to ricochet and soar for four technical reasons now shared by an analyst . These are as follows:
Even if the aforementioned upswing does not seem sustainable at current prices, Bitcoin’s macro outlook remains optimistic.
One trader shared the chart below that Bitcoin has bounced off a critical macro level – a sign that the uptrend remains intact:
„The $ BTC financing and premium index reached its lowest level since March 19th yesterday … Except that this time we are again testing a multi-year S / R level with a confirmed bullish break in MS up to the monthly chart …“
Bitcoin’s fundamentals also remain bullish, suggesting that the asset has scope for rebound. Raoul Pal, CEO of Real Vision, comments:
“Most people don’t understand the latter, but to put it simply, Powell has shown that there is ZERO tolerance to deflation, so they’ll do ANYTHING to stop it, and that’s good for the two toughest investments – gold and Bitcoin. Powell WANTS inflation. I don’t think he’ll get any real demand push inflation, but he’ll get a fiat devaluation, in conjunction with the other central banks that are all on the same mission. „
Bitcoin could see further weaknesses in the short term, but most analysts remain optimistic about BTC’s long-term trend.