Bitcoin failed to record any notable increase in price over the last 48 hours. It registered severe losses that gave rise to other conditions; bearish and bullish.
It is worth noting that at the peak of the bearish dominance, the apex coin had one of its biggest losses over the last two weeks. It started trading at $21,697 and retested the $20k support. Although it failed to flip it, the asset closed with losses of more than 6%.
The said mark flipped the next day as the downtrend continued. This time, bitcoin dipped to a low of $19,567 but found support. Nonetheless, it closed with meager losses.
So much liquidation happened during he period under consideration. According to available data, over the last 72 hours, traders lost more than $500 million in the derivatives market.
Several actions also took place with regards to indicators. For example, BTS tested its 50-day Moving Average for the first time in more than two months. Shortly after flipping it, it rebounded.
The Relative Strength Index was also briefly below 30 during the dip below $20k. We also noticed a similar bearish movement from the Moving Average Convergence Divergence as the 26-day EMA continues its downtrend.
Light at the end of the Tunnel
A look at the chart shows that RSI is gradually recovering. It is back above 30 and many may conclude that the rules governing the metric is taking effect. If this trend continues, we may expect further increases in price.
Recall that a previous analysis stated that there are two CME gaps, one between $27k and $28k and the other between $20 and $19k. It added that a drop below $20k is inevitable.
Trading action over the last 48 hours ensured that the CME gap closed as BTC dipped to $19k. A look at the chart reveals no more gaps.
Current price movement may be an indication of further price increases. Currently green, this is the first positive candle since the week started.
