Outside Source
Bitcoin’s price has experienced a massive decline in the past 24 hours, dropping more than 10% and sending a lot of investors into panic mode.
Technical Analysis
By TradingRage
The Daily Chart
On the daily chart, it is evident that the price’s failure to break above the $68K resistance level has proven costly, as the market has been dropping consistently since.
Both $60K and the 200-day moving average, located around the $61K mark, have been broken to the downside. BTC is currently trading at around $50K and could soon test the $48K support level. Yet, with the RSI showing oversold values, the price might find a bottom soon, even for a short while.
The 4-Hour Chart
The 4-hour chart depicts an almost vertical decline since the breakdown of the $60K support level. With the $54K July low getting broken through, the market structure is very bearish at the moment.
Meanwhile, The Relative Strength Index is again showing a clear oversold signal in this timeframe. While this cannot be considered enough for a recovery, at least a consolidation above the $48K support level seems probable in the short term.
Sentiment Analysis
By TradingRage
Bitcoin Funding Rates
The futures market has once again caused problems for Bitcoin, as the price has been in a free fall as a result of a massive long liquidation cascade. This event can be clearly seen on the Funding Rates metric chart.
The Funding Rates metric demonstrates whether the buyers or sellers are more aggressive on aggregate (market orders).
The recent crash has resulted in the most negative funding rate value seen in 2024. Negative funding rates can also result in a short liquidation cascade, which could result in a v-shaped recovery. Yet, it might be too soon to draw such a conclusion.
This article first appeared at CryptoPotato
