- Bitcoin took a 23% nosedive in the past 48 hours, generating significant losses across the board.
- Now, it seems like BTC is bound for a bullish impulse as sidelined investors “buy the dip.”
- A spike in upward pressure could push prices towards $53,000.
Share this article
Bitcoin has shaken out many of the market’s weak hands following the latest correction. Though a short recovery. is on the cards, bears abound.
Bitcoin Primed to Rebound
The flagship cryptocurrency took a 23% nosedive after rising to a new all-time high of $58,500 on Feb. 21. The downswing pushed BTC to a low of $44,900 recently, generating nearly $6.50 billion in liquidations across several derivatives exchanges.
Despite the massive losses incurred within such a short period, the pioneer cryptocurrency could be preparing to rebound.
The Tom Demark (TD) Sequential indicator presented a buy signal on BTC’s 4-hour chart. The bullish formation developed as a red nine candlestick.
Such technical pattern forecasts that Bitcoin could be bound for a one to four 4-hour candlesticks upswing before the downtrend resumes.
A spike in buy orders around the current price levels that helps validate the TD setup’s outlook might see Bitocin rise to $53,000, based on IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model.
Here, over 720,000 addresses had previously purchased more than 550,000 BTC.
Given the strength of this supply barrier, it is likely that it may absorb some buying pressure. Holders within the $53,000 range may try to break even in their positions as prices rise, fueling another leg down.
That said, investors must pay close attention to the $46,200 support level as it is the only barrier preventing further losses. Failing to hold above this critical demand wall could be catastrophic for those betting on the upside.
The IOMAP cohorts show that the next significant support wall sits around $40,000, representing a 16% downswing from the current price levels.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
Bitcoin Becomes 6th Most Valuable Asset in the World With $1 Trillion …
Bitcoin breached yet another significant milestone of $1 trillion market capitalization, passing Tesla and Tencent to become the sixth most valuable asset in the world. A Remarkable Rise in Bitcoin…
India’s Financial Regulator Orders Against Crypto Holdings: Repo…
The Securities and Exchange Board of India (SEBI) has reportedly ordered stock promoters to exit all cryptocurrency holdings before raising funds. SEBI Warns Indian Stock Promoters SEBI has reached out…
Looking Back on 2020 and 2021 Predictions
Happy New Year from all of us at Crypto.com Research! 2020 was an unprecedented year for the world and for crypto. Before we fully plunge into 2021 predictions, we will…
Kraken Users Threaten Lawsuit Over Flash Crash
Kraken users on Reddit have discussed launching a class-action lawsuit due to losses they claim were incurred in a flash crash earlier today. Traders Consider Lawsuit On Feb 22., multiple…