Bitcoin (BTC) still hanging onto support – will it hold?

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As an experienced analyst, I’ve seen my fair share of market volatility in the cryptocurrency space. The recent downward trend in bitcoin (BTC) prices, which dipped as low as $56,500, was no exception. The sell-off from Spot Bitcoin ETFs was a significant blow, with net sell-offs totaling over $600 million within a few days. The bears seemed poised to take control, pushing the price below the crucial support level of $59,000.

Over the past few days, the bitcoin price dipped as low as $56,500. Despite significant selling pressure from Spot Bitcoin ETFs, the bulls managed to drive up the price. Currently, bitcoin is precariously holding on to its support at $59,000. The question remains: can the bulls sustain this level?

Bears throw the kitchen sink at $BTC

As a researcher studying the Bitcoin market, I’ve been anticipating a significant price drop, potentially reaching levels as low as $51,000. However, despite the bears’ persistent efforts to push down the price, this expected dip has yet to occur. Their latest attempt came in the form of a massive net sell-off from Spot Bitcoin ETFs totaling $563.7 million on Wednesday. This substantial sale could have been the catalyst for the long-awaited downturn. However, Thursday saw another day of net outflows, albeit smaller than the previous one at $34.4 million. This marked the seventh consecutive day of net outflows from Bitcoin investors. The selling pressure shows no signs of easing.

$BTC holds the line

As a crypto investor, I’m elated to see Bitcoin’s (BTC) daily chart showing a remarkable recovery, managing to reclaim the crucial level of $59,000 and preventing it from becoming resistance once again. However, progress above the current trend line has been slow, indicating that there’s still a battle to be won. To reverse this downward trend effectively, a weekly close above $61,000 seems to be the key target. Weekends often bring bullish momentum for Bitcoin, so we might see this milestone reached during these days.

Price collapse could still take place

From the bears’ point of view, the price decrease might not have come to an end yet. If the bulls neglect to capitalize on this rebound, there is a possibility that the value will continue to drop and reach approximately $52,000.

$BTC ace in the hole is the weekly stochastic RSI

On a weekly basis, the market situation appears more favorable. The current weekly candle exhibits a longer wick towards the downside than the upside, which is a bullish sign and increases buying pressure as the price has already retreated to this level. Additionally, there is robust support at $52,000 if there is a market downturn.

As an analyst, I’ve identified a significant factor that could potentially drive Bitcoin’s price upward: the stochastic RSI (Relative Strength Index) on its weekly chart. The signal lines at the chart’s bottom have been trending downward, but recently, they show signs of leveling out. If these lines continue to follow this pattern and the blue fast line crosses above the slow line by the end of Sunday, we might witness a quick price reversal and an upward trend in Bitcoin.

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2024-05-03 13:01