Billions worth bitcoin liquidated in a small-time frame which declined the price miserably
The plunge may drop the price below $55K levels if a healthy rebound does not occur within the time
BTC price seems to have filled the CME gap and hence a healthy rebound to the levels above $60K may be imminent
Bitcoin Price Rally Still Looking Bullish!
The Bitcoin price rally recently hit new highs above $60,000 and hence the price target for the BTC price rally was set above $70,000. However, the price consolidated for a while and plunge mercilessly in the past couple of hours.
As the liquidations of billions of shorts led to a surge towards the ATH, billions of longs liquidations result in a plunge. According to reports nearly $1.12 billions of longs were liquidated in just 5 minutes. The possibilities of institutions extracting their profits cannot be ruled out.
The most pivot thing for the BTC price currently is to hold strong above $55,000 levels, after which, $65K levels is imminent. On the contrary, failing to sustain above the levels may accelerate the plunge close to $51.5K levels.
BTC Plunge Filled CME Gap!
The CME gap and the BTC price are sometimes closely related. However, most of the times, it is not mandatory that the gap fills, yet the current gap around $57K seems to be filled. Moreover, it has tested the critical support area around $55.5K and the long liquidations, both indicate a possible bull run.
The price is expected to rebound to the level above $60,000 in a very short while. However, Bitcoin has always bounced back each time after a massive pullback and hence, the current plunge will also be reverted very soon.
Collectively, the bitcoin price rally is may continue towards the set targets above $73,000. However, the rally includes slight plunges or pullbacks which may be recovered very soon in the coming days.