Bitcoin recently experienced a significant drop below the $80,000 mark, reaching $74,500 on April 7th. This price action has raised concerns about whether Bitcoin is entering a bear market. Despite this, Michael Saylor’s strategy remained on the sidelines during the dip, garnering attention for its lack of market activity. The lack of a clear bottom and bounce led to speculation about the possibility of Bitcoin consolidating in the near future.
The bearish market structure was further confirmed when Bitcoin breached the recent lower low at $78,600 on April 7th. The RSI on the daily chart indicated growing bearish momentum, although the OBV did not show significant selling pressure. The 61.8% Fibonacci retracement level at $74,400 was on the verge of being tested as support, leaving uncertainty about whether BTC bulls could defend this level. However, some hope emerged from the 4-hour chart, showing a potential short-term range between $75,100 and $80,000.
The 1-month liquidation heatmap suggested the possibility of Bitcoin consolidating above $74,500, allowing for a build-up of long liquidations before potentially diving below that level. Traders should be prepared for increased uncertainty and the potential for further downside movement in the price of Bitcoin. It is important to note that the information provided in this article is the writer’s opinion and does not constitute financial advice.
In conclusion, Bitcoin’s recent price action has raised concerns about a possible bear market, with the price dropping below the $80,000 mark and reaching $74,500. Michael Saylor’s strategy of remaining on the sidelines during the market dip has attracted attention. The lack of a clear bottom and bounce has led to speculation about Bitcoin potentially consolidating in the near future. The breach of the recent lower low at $78,600 reinforced the bearish market structure, with the RSI indicating growing bearish momentum. However, the lack of significant selling pressure according to the OBV provided a faint glimmer of hope for Bitcoin bulls. The 1-month liquidation heatmap suggested the possibility of Bitcoin stabilizing above $74,500 before potentially diving below that level to hunt down long liquidations. Traders should be prepared for increased uncertainty and the potential for further downside movement in the price of Bitcoin.
