The crypto market leader, Bitcoin, sets a bearish tone for the market with a sharp 7% overnight fall. As per coin glass, the sudden bearish move liquidates around a billion dollars market-wide. With $855 Million in long positions suffering the sudden fall and $194 Million in short positions.
The largest liquidation is seen in Binance, the biggest crypto exchange as per trading volume. Centric to Bitcoin, liquidations in long positions account for $386 Million and $120 Million in short.
Before its downfall, Bitcoin price action maintained an uptrend with a solid support trendline. However, in a range breakdown with the bottom support at $29K, the falling BTC price breaks under the support trendline.
The spark in the daily trading volume with the 7% bearish candle clearly indicates a huge supply inflow. The downfall also breaks the 200-day EMA as the bearish influence grows. Currently, Bitcon price trades at $26473 with an intraday fall of 0.71%, challenging the bullish dominance at the 78.60% Fibonacci level.
The downtrend influences a down spike in the 50-day EMA and may lead to a deathcross if the downtrend continues or goes sideways.
The technical indicators like MACD and RSI line display a bearish picture. The bearish crossover with the rise in bearish MACD histograms aligns with the RSI line deep in the oversold zone.
Is Bitcoin Going To Crash To $20K?
Currently trading at $26K, the next crucial support zone for BTC price action is the $25K cushion. Apart from a psychological mark, the $25K holds a critical price action value in the Bitcoin chart. Therefore, with the $25K level standing strong, the chances of the BTC price reaching $20K are minimal.
On the flip side, if the Bitcoin market value plummets below the $25K support level, the downtrend will crash the BTC price drastically. Potentially retesting the $20K mark.
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