Bitcoin’s worrisome correction has continued to find lower supports as the price has failed to find a local bottom. That said, Tuesday’s low at $108,700 may have been that bottom. Is the rebound loading, or could there be even more pain to come?
$BTC momentum indicators reset
Source: TradingView
This current correction from top to bottom has so far totalled a loss of 12.74%, or in dollar terms, a much more impressive $15,800 haircut. However, If one takes into account that the previous bull flag correction was also around 12%, perhaps the current price malaise isn’t as bad as it feels.
At the bottom of the chart, the Stochastic RSI indicators have now reset. This is the situation for the other short-term momentum indicators, with even the daily time frame indicators coming to their low.
Also, if one looks at the Binance futures liquidation heat map, there is a pocket of liquidity at $108,464, while up above, between $111,000 to $112,000, there is a whole lot more.
$BTC resting on strong bull market price structure
Source: TradingView
The daily chart reveals the amount of support that the $BTC price has underneath where it currently sits. This is all good bull market structure, and should the price fall through this it really would be a cause for concern. That said, this is not expected to happen. The high probability is that the price bounces from this major horizontal support.
Price indicators to turn positive again?
Source: TradingView
The weekly chart illustrates that the bulls still have work to do. Given the bearish movement for the $BTC price over these last 2 to 3 weeks, a lot of indicators have already signalled bearish price action. However, they mostly all lag the real price action, just like a super tanker that is yet to act on a 30 degree rudder movement.
As long as the Bitcoin price does bounce from here, and that is a good possibility, the indicators will eventually reflect this, and by the end of the week, the MACD at least may still avoid the indicator line cross of the signal line, while the Stochastic RSI indicators might just slow their downward progress and start to lessen the angle of descent.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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