With Major Liquidity Swept and RSI reset Bitcoin is now going UP
2024-12-23
Category: None

In the last few days, after achieving a new all-time high of $108,000, Bitcoin has experienced a massive dump, liquidating many retail traders using leverage. This market downturn was caused by several factors. First, Bitcoin was severely overbought and overdue for a correction. Second, Jerome Powell added to the market uncertainty by making strong anti-Bitcoin statements, dashing hopes of the U.S. adding BTC to its Federal Reserve reserves.

As a result, the market saw a steep fall, with major altcoins such as SOL and DOGE dropping over 30%.

 The Main Question: What’s Next? 

Bitcoin is unlikely to go up from here in the immediate term. Instead, it may be better to position for a short targeting the $90-91K range. The market might remain bearish over the Christmas holidays, giving “holiday discount” vibes. It’s not a good idea to buy Bitcoin with leverage at this moment. Waiting until next Monday to reevaluate might be a safer option.

Technical Analysis:

As highlighted, Bitcoin has broken out of an ascending channel and dropped significantly. One of the key technical reasons for this is the overbought RSI. Major  resistance  is currently around  $99.7K , while key  support  lies between  $89.5K and $87.5K . A break below these levels could indicate a strong move in either direction.

The most liquidity is around  $92.2K , where Bitcoin is likely to gravitate before making an upward move. Additionally, RSI has hit a support level, which increases the possibility of a bounce from here.

 Outlook: 

After the holidays and once Bitcoin sweeps the lower liquidity levels, we could see an excellent  buying opportunity . There is potential for BTC to reach  $118K by the end of January . Moreover, Donald Trump’s inauguration could act as a catalyst to drive Bitcoin’s price higher once again.