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  • Bitcoin has witnessed tremendous selling pressure over the past day that has wiped out all the gains made a few days ago as a result of the “Elon Musk” pump.
  • The perceived selling pressure comes from a combination of spot and derivatives, with investors typically at risk
  • It remains unclear what could be the cause of this, but it could be a combination of technical weakness and turbulence in the traditional market
  • An analyst now notes that there is a strong possibility that another downside is looming for the entire market
  • He points to the cryptocurrency’s January low as the next level he is closely watching, with a bounce here potentially enabling a massive advantage

Bitcoin has seen some wild price action in recent days. It all started with the approval of Elon Musk BTC, which catalyzed a massive pump to $ 40,000 that has been completely cleared in recent days.

This “FOMO” -induced pump appeared to provide exit liquidity to containers that wanted to get out, as it was sold aggressively.

A trader believes this is a sign of impending downside as he now points to the cryptocurrency’s low in January as a short-term target.

Bitcoin crashes as bears erase the entire “Elon Candle”

Earlier this week, Elon Musk changed his Twitter bio to “#Bitcoin”, noting that the change was inevitable in retrospect.

This caused Bitcoin to rise nearly $ 7,000 and cause nearly half a billion in short liquidations.

However, the selling pressure at these highs was significant, sparking a massive rejection that has since resulted in the erasure of all the profits owed to Musk’s approval.

BTC could soon move to the January low

A trader believes that a move towards Bitcoin’s January lows could be in the cards, especially given the multiple rejections it posted on a major trendline.

“Bears have a clear invalidation from here imo. Easy to flip for a long time if it’s wrong, ‘he commented gravely as he pointed to the table below.

Bitcoin

Image Courtesy of TraderSZ. Source: BTCUSD on TradingView.

Despite this sentiment, there appears to be a strong institutional bid around $ 30,000 as the crypto bounces back every time this level is tapped.

As such, a possession could yield more than $ 30,000 Bitcoin with room for significantly more upside in the coming days and weeks.

Featured image from Unsplash.
Charts from TradingView.



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