After consolidating above the $37K decisive level for a few weeks, Bitcoin was eventually rejected after another attempt at $40K and plunged below the key support following tremendous bearish momentum. BTC futures market has seen a massive long liquidation due to the recent bearish leg.
Technical Analysis By Shayan
The Daily Chart
Many retail investors have been buying Bitcoin around the $37K range, resulting in a lot of liquidity (sell stops) below the threshold level. The market is now grabbing the resting liquidity, and the $30K substantial demand zone might be the next major support area to be tested.
On the other hand, the RSI indicator has crossed into the oversold territory. This might result in a short-term rebound that will form a lower high, indicating the start of a new bearish trend.
The 4-Hour Chart
Corrections always accompany a healthy rally. Bitcoin has been forming a continuation correction flag pattern after a huge bearish move starting at $69K (th