Bitcoin (BTC) has been experiencing a sharp downturn on Wednesday, backed by the large order of sale on prominent crypto exchange Binance and the high UK inflation data. The BTC/USD rate decreases around 4.5% bringing it to a worse one-day performance since 9th of March. The liquidations in the leveraged long positions are still behind $40 million, they have not reached the most significant point this month. The price is still protected by key psychological level and the 21-Day Moving Average at $29,043.

Should the support break, there is a real possibility of a sudden drop to around $28,000. The 50DMA points to the $26,500 area, and the next strongest aid is between $25,200 to $25,400. Even a retreat to mid-$20,000s can appear as an opportunity for long-term investors.

The indicators of on-chain confirm a new bull market, and the macro backdrop is likely to become far more suitable for Bitcoin in 2023 than it has been recently. Apart from increasing rate hikes from Federal Reserve, a recession is expected in the later half of the year. The options markets remain bullish, proved by the 25% delta skew of Bitcoin options for 7, 30, 60, 90 and 180 days. All the signals are in support of further gains rather than losses.



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