Bitcoin sees massive rally overnight – but bulls not yet in control

It’s been a wild 24 hours for Bitcoin, as the benchmark cryptocurrency saw one of the most intense sell-offs in recent memory yesterday.

After a slow grind to the downside that had taken place over the past few days, BTC finally saw a capitulating selloff that sent its price plummeting to lows near $28,000.
At this point, many investors were clearly in a panic sell-off, as funding for short positions skyrocketed and liquidation of long positions began to pile up.
However, this marked the bottom as BTC has since seen a massive rebound from those lows.
One analyst notes that there is still a crucial level that needs to be significantly surpassed before BTC can see a continuation of its uptrend.

Bitcoin and the entire cryptocurrency market have been caught in the clutches of wild volatility in recent days.

Fortunately for the bulls, BTC’s overnight rally appears to be the „V-shaped“ recovery that many analysts have said is necessary for the cryptocurrency to form a long-term bottom.

Assuming this rally continues to extend, it could confirm a macro reversal and lead to a significant further uptrend. However, there is one level that needs to be firmly reversed to support first.

Bitcoin shows signs of strength after overnight rally

Yesterday’s massive sell-off was quite violent and seemed to mark a macro reversal of Bitcoin’s uptrend at the time.

Since then, however, Bitcoin (Go to Plus500 Bitcoin Buying Guide) has recovered and is currently trading up 5% to its current price of $32,900 – a remarkable rise from lows near $28,000.

Where the market is headed in the medium term will likely depend largely on whether the bulls can maintain this momentum and continue to print a textbook „V-shaped“ recovery pattern.

Here’s why BTC isn’t out of the woods yet

Bitcoin still has a key level to break through before it is completely out of the woods.

One analyst writes about it in a tweet, explaining that the first „point of control“ he’s watching closely is at $34,900.

„POC at 34900 is the first area of interest right now.“

Image courtesy of Byzantine General. Source: BTCUSD on TradingView.

The coming days should offer insights into the longevity and significance of the overnight rebound – and whether or not another downtrend will follow.