Bitcoin

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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-price-plummets-in-one-day" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Price Plummets in One Day</a><br></p>
<p style="text-align: justify">In a dramatic turn of events, <a href="https://en.bitcoinhaber.net/engineer-predicts-bitcoins-300-rise" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a>‘s (BTC) price experienced a steep decline, shedding over 10% within 24 hours. This sudden drop has sparked panic among cryptocurrency <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> and raised questions about the cryptocurrency market’s <a href="https://newslinker.co/what-are-the-future-technologies/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">future direction</a>.</p>
<h2 id="what-do-daily-and-4-hour-charts-show">What Do Daily and 4-Hour Charts Show?</h2>
<p style="text-align: justify">The daily price chart indicates that Bitcoin’s inability to surpass the crucial resistance level of $68,000 triggered a severe downward trend. The price fell through the $60,000 support and the 200-day moving average of approximately $61,000. Now trading around $50,000, Bitcoin is on the brink of testing the $48,000 support level. The Relative Strength Index (RSI) shows oversold conditions, hinting at a potential short-term bottom.</p>
<p style="text-align: justify">On the 4-hour chart, Bitcoin’s drop since breaking the $60,000 support level appears almost vertical, with a more pronounced bearish structure emerging as it fell below July’s low of $54,000. The RSI here also signals oversold conditions, suggesting a possible consolidation above the $48,000 support level in the near term.</p>
<h2 id="how-did-funding-rates-influence-bitcoin">How Did Funding Rates Influence Bitcoin?</h2>
<p style="text-align: justify">The futures market significantly impacted Bitcoin’s recent price plunge, with a substantial long liquidation accelerating the decline. The Funding Rates metric chart reveals aggressive selling behavior, contributing to the recent market turmoil.</p>
<p style="text-align: justify">In 2024, the most negative funding rate was recorded during this market crash. While negative funding rates can occasionally lead to a short squeeze and a potential V-shaped recovery, it is too early to make definitive predictions.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<p style="text-align: justify">– Monitor the $48,000 support level closely as it is crucial for potential stabilization.<br> – Keep an eye on the Funding Rates, as they offer insights into market sentiment and possible recovery signals.<br> – Observe RSI indicators on both daily and 4-hour charts for signs of oversold conditions, which may suggest a market bottom.</p>
<h2 id="outlook-and-conclusion">Outlook and Conclusion</h2>
<p style="text-align: justify">The drastic drop in Bitcoin’s price has indeed shaken investor confidence. However, oversold signals from the RSI across various timeframes indicate that the market might stabilize soon. Key levels to monitor include the $48,000 support and the behavior of funding rates, which will be crucial in determining the market’s next move.</p>
<p style="text-align: justify">While the current downtrend is concerning, the potential for a short-term recovery remains. Should Bitcoin remain above the $48,000 support level and funding rates start to improve, a period of consolidation or even a V-shaped recovery could be on the horizon.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-price-plummets-in-one-day" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Price Plummets in One Day</a></h5>

Bitcoin Price Plummets in One Day

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