- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Space ID price succumbs to selling pressure with $3.54 million worth of ID tokens unlocked in a cliff event
Space ID (ID) price remains bullish based on the Parabolic SAR price-tracking indicator, which continues to track ID price from below. However, the token is trading at a value that is significantly lower than its rate 24 hours ago, an outcome attributed to its scheduled token unlocks event.
Quant price maintains steady multi-month downtrend but 60% of QNT holders remain above water
Quant (QNT) price is trading with a bearish bias, a steady state that has prevailed for the most part of the year. Despite the downtrend, the majority of QNT token holders remain above water, sitting on unrealized profit.
Optimism receives backlash after decision to split 116 million OP tokens for treasury management
Optimism network recently announced the sale of 116 million OP tokens valued at around $162.4 million in a private sale to seven purchasers for treasury management. While the transaction was not expected to impact OP price, it has provoked backlash from onlookers.
Binance unintentionally causes Ethereum gas fees to soar 1,900% as hundreds of inactive wallets move ETH
With many transfers happening within a thin timeframe, Ethereum gas fees soared 1,900%, moving from 15 to around 300 Gwei. The same was reflected in simple Peer-to-Peer (P2P) transactions, which soared from the conventional 40 cents to around $10, data from Dune analytics shows.
Bitcoin: BTC contemplates crash in September
Bitcoin price remains unfazed by the US CPI announcement on September 13 and continues to move in a range. The weekly chart, however, shows a potential short-term recovery rally that could set the stage for a steep correction.