Crypto suffered a slump in the markets early on Tuesday, resulting in about $300 million in liquidations across a number of crypto futures contracts. As per the on-chain analysis, over 109,000 traders’ positions were liquidated in the last day, and while bitcoin values rose above $52,000 on Monday, they dropped approximately $3,000 on Tuesday.
BTC Price Action
After trading on a high horse in the previous days, The market lacked the necessary momentum to sustain its rally (because to low volume), and the bears prevailed.
At the time of writing, BTC price is trading at $48125 down by 3.3% in the last 24 hours. The $45k-46k area will be the next crucial supportive level if BTC loses the first support zone.
On the upside, the price might face resistance near the $48,800 level. The next resistance is near the $49,200 zone, above which the price could revisit $50,000.
Furthermore, looking at the RSI indicator, we can see that the lower band of the Bollinger is approaching the oversold zone, indicating that a positive correction is likely to occur at some point.
Bitcoin Price Breakout On Horizon
Tone Vays, a seasoned trader and analyst, believes the present market action is merely noise and predicts a significant Bitcoin (BTC) breakthrough.
Vays tells his subscribers in a new strategy session that Bitcoin has been bullish since it rebounded from the pandemic-induced drop in March 2020.
“..We had a 50% speed bump right there (May 2021)… And now, we just had about a 38% speed bump. I don’t know if the low is in. It’s probably in. The low is probably in.”
Bitcoin is currently trading within a huge ascending triangle on the monthly chart, according to Vays. The technical pattern is a bullish one, implying that once an asset breaks over resistance, it will continue to rise.
“The monthly chart looks absolutely fantastic.”
According to Vays’ chart, BTC needs to break through resistance around $60,000 in order to spark a big run beyond $100,000.
In the medium term, Vays believes Bitcoin must rise above a crucial level to persuade him that the bottom has been found.