- Near-term threats include virus worries and worldwide market corrections.
- The critical support is presently between $53K and $50K.
Fear of a new COVID-19 variation propelled global equities down, prompting the crypto market to fall. Although the near-term price movement is negative, the underlying fundamental and on-chain trend remains bullish. Bitcoin has challenged a significant uptrend support line at $54K, approaching a critical technical support zone.
Short-term technical remain cautious, particularly with stock market decline. The stock market may be facing a short-term correction, which will undoubtedly affect BTC. The critical support is presently between $53K and $50K, which the bulls must defend.
An early bullish divergence on the 4-hour chart indicates a short-term favorable event. Because of the potential of future long liquidations, investors should expect wicks of $53K to $50K. Plan B, a famous analyst, tweeted about bitcoin RSI at 66 and BTC 10% below monthly closing ATH.
Right Time For Long-term Investors
Long-term holders (LTHs) can purchase now regardless of the further decline since nothing fundamentally changed in BTC. Long liquidations, younger coins realizing losses, and lately, the macro risk-off over virus worries have contributed to selling pressure.
Long-term holders and miners often sell fiercely in a downturn market while exchange inflows surge, dramatically increasing reserves. Current circumstances reveal none of this as exchange reserves continue to decline. A decent pullback to liquidate leverage before BTC resumes the bull market.
Near-term threats include virus worries and worldwide market corrections. BTC fundamentals and on-chain remain optimistic. It would be great to see Bitcoin outperform equities during a worldwide risk-off period like September and October.