Bitcoin Price Analysis: BTC Collapses 10% in a Day, Heres The Next Critical Support

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  • Bitcoin has broken the $37K support to the downside as the price crashed more than 10% yesterday. This could trigger a bearish scenario towards the $30K demand zone.
  • The 100-day and 50-day moving averages seem likely to chart a bearish cross in the next few days, further aggravating the selling pressure.
  • On the other hand, if the price can close above the $37K level soon, the bearish breakdown would be considered false and could lead to recovery towards $40K.
  • The RSI is also reaching the oversold area, indicating a possible bullish pullback and a local bottom before further potential continuation of the bearish trend.
  • On the 4-hour timeframe, the price has been forming a falling wedge over the past couple of weeks after getting rejected from the $43K area.
  • The RSI has also entered the oversold area in this timeframe a signal which could result in a consolidation or bullish pullback in the short-term before the next bearish leg occurs.
  • Bitcoins price experienced a massive 10% drop yesterday, breaking below the $37K support. Bearish sentiment is starting to take over the market again as investors fear a continuation towards $30K and beyond.
  • Meanwhile, the exchange reserve has been on a sharp decline over the past few months, as bitcoins have been regularly withdrawn from the exchanges.
  • Interestingly, amid this aggressive accumulation and the possibility of a supply shock, the price is still on the decline.
  • This structure points out the lack of demand in the market considering the economic and geopolitical uncertainty around the world.
  • Additionally, the futures market has played a massive part in this crash, as a long squeeze occurred yesterday, which led to a rapid drop in price.
BTCUSDT Daily May 6 2022 scaled Bitcoin Price Analysis: BTC Collapses 10% in a Day, Heres The Next Critical Support
Bitcoin Price Analysis: BTC Collapses 10% in a Day, Heres The Next Critical Support 2

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