Bitcoin – A healthy break!

In the end, the FOMO that was setting in on altcoins got the better of the ongoing madness. A healthy break on Bitcoin allows for some nice liquidations. But is that retracement enough? And will we see a bullish comeback? That’s what we’ll be talking about!

Warning This article does not constitute investment advice or an invitation to invest. It is for information purposes only. You are solely responsible for your trading and investment decisions.

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The BTC retracement that stings

We needed this in mid-March 2024. Indeed, too many people on the networks were starting to make money with memecoins and even Auntie Jacqueline was starting to text us to see if she should take Shiba bags…

A beautiful 15% retracement so far on Bitcoin, taking quite a few altcoins with it including some that hadn’t even performed yet. Well, ATOM comes to mind. No, this is not my dismay at some of the tokens in my personal bag.

The real question is, is it over, or should we keep digging?

Should we stop or continue? Is BTC taking a healthy break, only to take off again?

So far, we’ve liquidated a few heads. We’re talking about over $600 million liquidated in 24 hours, which is starting to look good. But is it enough? Let’s take a look at the remaining liquidations and market sentiment.

We can see that the balance remains in favor of leveraged Bitcoin buyers. This means that a large number of players are still in bad shape in the SOUTH, notably below the $59,000 low.

Then, orderflow isn’t without bad news either…

On the one hand, we have Bitcoin, with largely positive spreads. This demonstrates the very positive nature of market players, which inevitably ends up being punished.

On the other hand, altcoins which have a record number of open positions with more than positive funding, show that many people are leveraging to buy.

Conclusion

In short, an accumulation of data which gives a necessary retracement, which for the moment seems healthy, but which risks having to go deeper! If we were to look again at the areas of interest, we find two key areas:

• The first is support on the psychological $60,000 level.
• The second is liquidations just below $59,000.

It looks like we’ve found our short-term targets! Now we’ll have to see what happens in these areas before drawing any conclusions about the future.

See you next week for another article! In the meantime, take care of yourself and don’t make any hasty decisions!