Bitcoin could fall again before a slow spike

Bitcoin price rebounded to nearly $ 50,000 on December 5th as traders continue to consider recent events.

BTC / USD 1-hour chart | Source: TradingView

Data from TradingView shows that Bitcoin was less volatile as it rose to $ 49,777 before consolidation.

After falling to $ 41,900 on Saturday morning, the pair stabilized as the market completed the last massive leveraged deletion to hit Bitcoin this year.

Analyst Will Clemente has tweets:

“Regarding what happened last night: Open interest accumulated over many weeks + positive financing rate and low weekend liquidity (ie thin order book) created the perfect storm for a longer liquidation. If the book is thin, compulsory liquidations are carried out, which leads to a drop in prices. ”

However, for some there is every reason to be cautious, and the possibility of further declines to long-term lows is not out of the question.

Lex Moskovski, CEO of Moskovski Capital, suspect in a comment section on the Bitcoin outlook.

“BTC is falling again in price. CT loses and sells more. But it was miraculously acquired. ”

“Consolidation before slow increase”

This slow rally needs to regain key levels of support: $ 50,000 and a market cap of $ 1 trillion just over $ 53,000, plus many previous all-time highs.

Meanwhile, trader and analyst Rekt Capital is looking at the 200-day exponential moving average (EMA), a support line held since August but broken on Saturday, as the critical limit.

The source: Rect capital

In late September, when BTC was last trading at $ 42,000, the price tested the 200 EMA and Rekt Capital. Note the severity of this decline compared to earlier times in history.

“They survived the BTC bear market with -84.5%. They survived the -63% crash in March 2020. They survived the -53% crash in May 2021. You will also survive this fall. ”

Has it been released yet?

This is shown by a look at the status quo on the futures markets Funding rate Neutral or slightly negative at the time of writing, significantly different from a few days ago.

A large number of Open Interest (OI) in the futures market were wiped out during the unwinding of leverage, and accounts worth over $ 2.5 billion were liquidated.

For commentators, the question now arises as to whether enough open interest has been reduced to ensure steady growth again?

https://twitter.com/Pladizow/status/1467174743056994312?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
Meanwhile, the weekly close is expected to hit Bitcoin’s lowest level since early October.

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