Key Points
- Bitcoin’s momentum shifts as its Relative Strength Index (RSI) falls below neutral 50, indicating rising selling pressure.
- Despite a bearish short-term outlook, the long-term market structure for Bitcoin remains bullish.
Bitcoin has experienced a change in momentum, as evidenced by its Relative Strength Index (RSI) dropping below the neutral 50 mark. This suggests an increase in selling pressure within the market.
The On Balance Volume (OBV) failed to reach a previous low, further indicating the growing selling pressure.
Bitcoin’s Recent Performance
In the last 24 hours, Bitcoin [BTC] has seen substantial losses. Notably, there was a 4.9% drop within an hour on the 2nd of April, leading to millions of dollars in liquidations.
The price plummeted below a liquidity pocket, and forced selling drove the prices even lower. Despite the bearish short-term outlook, the long-term view for BTC remains optimistic due to strong ETF inflows.
On the 12-hour chart, the market structure for Bitcoin is still bullish. However, a fall below $60.7k could potentially turn the market bearish. The critical levels to watch are $55.5k and $59.4k, as highlighted by the Fibonacci retracement levels.
Future Predictions for Bitcoin
Over the past 36 hours, there was a 4.2% drop in Bitcoin’s value. The 2nd of April witnessed $62.2 million worth of long liquidations on Bitcoin, and the H12 RSI fell below neutral 50, signaling a shift in momentum.
The OBV trended downwards in March and is still below a key level, showing that selling pressure has dominated in recent weeks and further losses could be on the horizon.
The $64.5k level is a key point of interest this week, as it serves as a short-term support level. However, technical indicators and lower timeframe price action suggest that Bitcoin may not trend upward significantly for some time.
The liquidation levels at $68k have been wiped out, leading to a liquidation cascade that pushed BTC prices down to $66.4k. Prices could potentially bounce higher to liquidate late, high-leveraged bears, but a significant liquidity pocket exists at $64k.
From $62.8k to $64k, there is a decent concentration of liquidation levels. Bitcoin’s proximity to this region indicates that it could sweep this zone next, suggesting traders should prepare for potential losses.
Please note that the information provided does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
