Faced with rejection at $70K, Bitcoin is down to $68,100 within hours. Is this the end of Bitcoin’s recovery rally, or will the bull run continue to end the week above $73K?
Within hours of hitting the $70K milestone after a month-long correction phase, the price of a single Bitcoin is back to $67,800. The intraday pullback drops the three weeks returns to 24% and forms a high rejection candle.
As the bullish positions are losing their strength, Bitcoin and altcoins are at shaky grounds. So, will the BTC price trend suffer a huge correction this week or a strong end this week shake out the bears?
Another Pullback Within Rounding Bottom For Bitcoin
In the 4H chart, the BTC price trend shows a quick reversal in the last three weeks from the low point of $54,400 to hitting the $70K ceiling. However, the 2% pullback from $70,000 and the overhead trendline in a 4-hour candle breaks the $68,000 support.
Furthermore, a rising wedge pattern is visible with two rising trendlines. Currently, Bitcoin trades at $67,844 and warns of a bearish continuation as a second red candle undergoes formation.
The RSI line shows a double top reversal from the overbought boundary, supporting the bearish scenario. Meanwhile, the dynamic support of the 20 EMA in the 4H chart fails; the 50 EMA is next in line.
Derivatives Hold A Bullish Viewpoint
As per Cryptoquant, Bitcoin’s open interest hit the $20.54B mark, a 6.18% surge in the last 24 hours. However, with the recent shift in dynamics and the quick fall from $70K, the Taker Buy-Sell Ratio is bearish, with a 0.57 sell side.
Bitcoin Derivative
Regarding liquidations, as per Cryptoglass, $26.74M worth of long positions in Bitcoin were liquidated in the last four hours. Meanwhile, the crypto market has witnessed a loss of $53.23M worth of long liquidations.
Will Bitcoin Surpass $70K This Week?
A rounding bottom reversal forming in the 4H chart marks a potential roadmap in the Bitcoin price trend. Currently, the recent correction remains a minor drop within it. However, the intraday drop of 1.04% and a potential drop ahead warns of a further correction.
Beyond the rounding bottom, the support trendline of the rising wedge is the next reversal spot for Bitcoin. Hence, with a dominant bull run in motion and a strong trendline in action, the bulls are expected to regain control.
As per the Fibonacci levels, the uptrend could hit the $71,665 peak by the end of this week.
