Bitcoin Holds Above $84,000 Following Sell-Off
Bitcoin was largely flat Thursday morning, just 24 hours after selling pressure overwhelmed bulls to send the price tumbling from $87,000 to just under $84,000. Despite that reversal, overall sentiment remains bullish as traders bet cryptocurrency will see another spike like Monday’s, when it surged from under $82,000 to $87,000.
Although bitcoin’s price stayed above $84,000 for most of the previous 24 hours, it dipped below that level when it fell from $84,545 to just under $82,873. Afterwards, the price began mounting a recovery, reclaiming $84,000 around 9:35 a.m. EST before hitting an intraday peak of $84,830 an hour later. The same pattern repeated as the price plunged to $83,500 roughly 30 minutes later before rebounding to $84,180 by 12:10 p.m.
The marginal gain left bitcoin’s month-to-date increase at just over 6% and its market capitalization virtually unchanged at $1.69 trillion.
Meanwhile, the sideways price action wiped out long bets, which accounted for a larger share of liquidated leveraged positions for the second consecutive day. Market data showed that of the $110 million in liquidated leveraged positions, long bets accounted for more than $80 million, underscoring the bearish sentiment that gripped the market. The situation was slightly different for the broader cryptocurrency market, however, where long liquidations made up two-thirds of the $332 million in wiped-out leveraged positions.
Bullish Outlook: Inverse Head-and-Shoulders Pattern
Despite the near-term volatility, some market analysts view the choppy price action as a necessary setup for a larger move higher. Technical traders point to a massive inverse head-and-shoulders pattern forming on the charts, with the left shoulder established around $61,000 and the head at $54,000.
According to this view, bitcoin’s price is currently sitting near the pattern’s neckline, and a temporary pullback toward the $70,000 to $72,000 range may occur to form the right shoulder and flush out late buyers. A clear breakout above $86,000 could then pave the way for a rally toward $100,000 and beyond in the coming months.
Conversely, bearish technical perspectives emphasize that bitcoin was twice rejected at the $87,300 resistance area. Under this view, the immediate focus shifts to key support between $80,000 and $82,000. A confirmed four-hour chart breakdown below $80,000 could trigger a deeper decline toward secondary support at $73,000 to $74,000, signaling a stepped downside progression toward $62,000 before any long-term recovery above $90,000 materializes.