The crypto market does not relent. In the last few hours, Bitcoin (BTC) has broken the critical support of $70,000, marking a decline of -7.77% for the day. What we are witnessing is a pitched battle between short-term panic and value seekers.
Key Points of the Drop:
Support Breach: The price has marked a low of $69,922.00, an area where liquidity is being tested after having fallen from $76,260.85 in just 24 hours.
Historical Oversold: The RSI (6) indicator is at levels of 18.92. Technically, this is a scream of "extreme oversold" that often precedes violent rebounds, although the underlying trend remains bearish.
Seller Strength: The MACD shows increasing red bars, confirming that the bearish momentum still has fuel. The moving averages (EMA 7 and 25) are now acting as tough ceilings to break at $70,680 and $71,140 respectively.
What to expect now?
The key lies in the closing of the current candle. If the price does not recover $70,500 soon, we might see a search for liquidity at lower levels. However, for long-term investors, these 'fear' levels are often where the best positions are built.
Volatility is the price we pay for financial freedom!
Important note: Trade with caution and a cool mind, create your own strategy.
