Bitcoin Bears Erase the “Elon Musk” Candle as Sellers Take Control

0
57

  • Bitcoin has seen massive selling pressure over the past day, undoing all the profits made by the “Elon Musk” pump a few days ago
  • The selling pressure comes from a combination of spot and derivatives, with investors generally taking on risk
  • It remains unclear what could be causing this, but it can be a combination of technical weakness and turbulence in the traditional market
  • An analyst now notes that there is a strong possibility that further downward moves for the entire market are imminent
  • He points to the January lows in the cryptocurrency as the next level to which he is closely watching, with a jump here potentially allowing a massive uptrend

Bitcoin has seen some wild price moves in the past few days. It all started with Elon Musk’s approval of BTC, which catalyzed a massive pump towards $ 40,000 that was completely cleared in the past few days.

This “FOMO” induced pump appeared to offer exit liquidity to owners wanting to exit as it was aggressively sold.

One trader believes this is a sign of an impending downtrend as it now points to the cryptocurrency’s January low as a short-term target.

Bitcoin crashes while bears extinguish the entire “Elon candle”

Earlier this week, Elon Musk changed his Twitter bio to “#Bitcoin” and commented that the change was inevitable in retrospect.

This caused Bitcoin to soar nearly $ 7,000, causing nearly half a billion short-term liquidations.

However, selling pressures at these highs were significant, causing a massive rejection that has since resulted in wiping out any gains made by Musk’s approval.

BTC could be heading for January lows soon

A trader believes a move towards Bitcoin’s lows in January could be in sight, especially given the multiple rejections it posted on a major trend line.

“Bears have a definite invalidity from here. It’s easy to shoot for a long time when it’s wrong, ”he remarked gravely, pointing to the table below.

Image courtesy TraderSZ. Source: BTCUSD on TradingView.

Despite this sentiment, there appears to be a strong institutional bid of around $ 30,000 as the crypto bounces almost every time it hits that level.

Holding above $ 30,000 could give Bitcoin room for significantly more upside in the coming days and weeks.

Featured image from Unsplash. TradingView charts.