There is no let-up in the pressure on Bitcoin, yet it has managed to stay near the $62,500 support line. From what CryptoJack is seeing, a hold at this point may well be followed by a recovery to $67,300.
Key Support and Downside Risks
It is now Saturday evening in Dubai and the price is sitting just above that key $62,500 mark. But should it slip below, the way is clear for more downside to the $57,200 area. Traders have their eyes on this; a break could mean a quick sell-off.
Holding above $62,500 is what will keep the market from any kind of panic. On the other hand, if the bears get the upper hand and drive it to $57,200, we are looking at roughly $9.2 billion in short positions being wiped out, according to the numbers on the CryptoJack channel.
Upside Scenarios and Potential Rebound
According to CryptoJack, a $62,500 floor for Bitcoin is key; should the price hold and make a comeback from there, an advance to the $67,300 resistance level would be in order. The case for a more aggressive bull run is made if we see $72,600, which would put some $4 billion in shorts to the sword. That kind of liquidation can spur additional gains.
The numbers in this week’s episode tell a story as well. There is a precedent for it: when you look at the MACD or RSI going into oversold, Bitcoin has a habit of making a base and then heading higher. It is not hard to see how the present market conditions could be priming us for one of those upturns.
Market Strategies and Broader Sentiment
The author put a limit buy on Bitcoin at $46,000 out in the open on UBIT, with an eye on the $40,000 to $50,000 band should the bears make their move. It is a kind of prudence you see from some in this market when things get volatile.
Then there is the case of Ethereum. CryptoJack has pointed out that a wave of ill will for ETH on social media can be a precursor to a run-up in price. It goes to show that one has to pay as much attention to the mood of the room as to the numbers on a chart.
Source — CryptoJack: https://www.youtube.com/watch?v=iXbK4jN6AZI
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