A $10,000 drop is concerning from many angles. Is this the indication of a local top or was this just a healthy pull back? Let us review various charts to find out the implications of this drop and where could BTC price move. This move by BTC took the crypto market cap down by $200 billion in a single day.
First, let us look at the BTC/USD LONGS
BTC/USD LONGS
There was a significant drop in the number of long positions on BTC as per the data by Bitfinex. Similar drops were found across other exchanges.
BTC Exchange Inflow
As per the data by CryptoQuant, over 28,000 BTC arrived on spot exchanges making it the single largest inflow in an hour since December 2017.
BTC/USD HOURLY BULLISH DIVERGENCE
On the hourly chart it can be clearly seen that the price is falling while RSI is rising. This is a clear indication of a bullish divergence which is technically followed by a rise in price.
BTC/USD Price Prediction
BTC is currently trading just above the support zone of $48,600. Below this support there is another weak support at $46,250. As long as BTC stays above these two support zone, we should see bounce back. In order for BTC to be bullish, it has to quickly reclaim the $53,000 zone. If BTC can do that and flip $53,000 to support, we could start seeing a move towards $67,000. Failure to hold the support at $46,250 could open the door for a drop towards $40,000.
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