- Bitcoin price has crashed roughly 9.7% in the last 24 hours.
- Although early bulls were punished on the recent sell-off, investors can expect a recovery rally to $25,000.
- if Bitcoin price flips the $18,293 support level, it will invalidate the bullish outlook.
Bitcoin price has triggered a steep sell-off that has caused the entire crypto market to tumble as well. More importantly, BTC has slid below a crucial support level and is on the search to find a new foothold to think of a new recovery plan. Ethereum, Ripple and other altcoins are are handling the downswing much better and are already ahead in terms of recovering recent losses.
Bitcoin price ready to make a U-turn
Bitcoin price surprised a lot of investors as it exploded to $22,850, but since then, it has caught more users off guard as it slipped below the previous weekly low at $18,500 and collected the sell-stop liquidity. Moreover, it is also close to the June 18 swing low at $17,593.
While investors might feel the pain in the short term, this move is helpful to set up a base for a potential recovery move back to $25,000. Therefore, this bearish outlook is an opportunity for patient BTC investors.
A sweep of the previous low is reason enough for Bitcoin price to take a u-turn, but market participants might be better off waiting until the June 18 swing low at $17,593 is swept. This liquidity run is critical to trigger the next leg-up to the weekly open at $19,405.
Flipping this level into a support floor could catalyze Bitcoin price to extend its up move and tag the $20,737 hurdle, which is the penultimate target. The $25,169 level, which is August month’s swing high, is likely what the market makers are seeking and could be a good place to book profits.
BTC/USD 12-hour chart
On the other hand, if the buyers fail to come through, it could knock the Bitcoin price lower and flip the $18,293 support level into a resistance barrier. This move will indicate a weak bullish front and also invalidate the bullish outlook.
Such a development could lead to a cascading price drop to the next support floor at $15,550.
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