Markets
Has Bitcoin Exited Its Corrective Phase? Here’s What You Need to Know Before You Jump In
Bitcoin Price is winding up! Crypto markets are witnessing a sigh of relief as the bulls seem to have regained their dominance. Additionally, some positive stories are also fueling the optimism around the tokens, which had turned into fear over the past weekend. Meanwhile, fresh rounds of transfers of around 3,100 BTC from the German government-linked address to Kraken and BitStamp have emerged.
This was assumed to create another round of fear within the markets, but Bitcoin managed to absorb all the selling strongly as the demand for the token was growing significantly. Furthermore, whales also seem to have utilized the opportunity to accumulate at a lower price as the BTC spot ETF volume again rose above 294 million.
With this, it is assumed that the BTC price has completed its correction and therefore may start testing the upper targets, recovering the lost levels in the coming days. However, the current trade setup displays a small probability of going through a correction phase.
Taking a bigger picture, BTC price has dipped below the crucial support zone, which has supposedly revived the bullish momentum. However, the technicals do not support the bullish narrative as a whole. Mainly because the RSI is cemented at the bottom, exhibiting minor bounces, while the OBV is still holding on to the support, validating the continuation of the downtrend. Therefore, if BTC price fails to break out of the support-turned-resistance zone between $57,412 and $58,381 before the CPI rates are out, a fresh downtrend could drag the levels below $53,000.
Despite the bearish clouds looming over the cryptocurrency, BTC price remains bullish in the short term. That is, the price that started the day’s trading on a cloud of bullish notes remains bullish until the end of the day’s trading and may even break above $58,000, which may gain even more bearish attention. However, the upcoming weekend may have an impact on the token as a rally above $58,500 may invalidate the bearish thesis, while a drop below $54,800 may revoke the bearish activity.
See also: Best Cryptocurrency to Buy Right Now While the Market Crashes