BTC/USD - Key Moment in the Market! Status Update! 😱

Bitcoin and the whole market liquidated bulls, over $1 billion in longs were liquidated.

This liquidation cascade led to BTC spiking all the way down to $42k. You had less than a few seconds to buy there before the bots finished the liquidations.

Now that the storm has passed slightly, we get a better picture of what has happened. Despite this drop, Bitcoin did not make a lower low, rather a higher low (HL). This is some good hopium here.

If BTC can hold above $42k then after some choppy price action, I can totally see a recovery.

The bad news, apart from price tanking, is that we broke BELOW a key bullish trendline since March 2020. In the best case scenario, this will delay the next leg up by quite a bit and now early 2022 would be the best candidate for a nice rally.

The worst case scenario, this is the start of a much larger correction. This would be confirmed as soon as BTC price falls below the previous low at $39k.

In any event, a drop of 40% in a bullish market is not UNCOMMON. We had at least 3-4 such instances in 2017 bull run. There is nothing new about this.

The only questions left is if BTC can hold here or not. The weekly chart and indicators are not kind. They flash a bearish divergence on RSI and a bearish cross on MACD. Lets see where this weekly candle closes first.

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