It’s been a wild 24 hours for Bitcoin as the benchmark cryptocurrency saw one of the most intense sell-offs in recent times yesterday.
After a slow grind down that had taken place over the past few days, BTC finally saw a capitulating sell-off that dropped its price to lows of nearly $ 28,000.
At this point, many investors were clearly in a panic sell as funding from short positions skyrocketed and liquidation from long positions began to pile up
However, this marked the bottom as BTC has since seen a massive rebound from those lows.
One analyst notes that there is still a critical level that needs to be clearly surpassed before BTC can see any continuation of its uptrend.
Bitcoin and the entire cryptocurrency market have been caught in the clutches of wild volatility for the past few days .
Fortunately for the bulls, BTC’s overnight rebound appears to be the “V-shaped” rebound that many analysts have said is necessary for the cryptocurrency to form a long-term bottom.
Assuming this rally extends further, it could confirm a macro reversal and lead to another significant uptrend. However, there is one level that must first be firmly flipped over for support.
Bitcoin is showing signs of strength after the nightly recovery
Yesterday’s massive sell-off was quite violent and at the time it seemed to mark a macro reversal in Bitcoin’s bullish trend.
Since then, however, Bitcoin has bounced back and is currently trading at a 5% gain to its current price of $ 32,900 – a remarkable rise from lows of nearly $ 28,000.
Where the market travels over the medium term is likely to depend largely on whether the bulls can maintain this momentum and continue to print a textbook “V-shaped” recovery pattern.
That’s why BTC is not over the top yet
Bitcoin still has a key level that needs to be broken before it is completely out of the woods.
An analyst tweeted about this, stating that the first “point of control” he was closely monitoring was $ 34,900.
“POC at 34900 is the first area of interest right now.”
The coming days should offer insights into the longevity and importance of the rebound overnight – and whether or not another downward trend follows.