Bitcoin’s Wild Ride: Will It Bounce or Keep Sliding Into the Abyss?

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Oh dear, Bitcoin has been on a bit of a downward spiral recently, and now everyone’s acting like it’s the end of the bull market. Panic buttons are being pressed all around, as if the cryptocurrency world is about to implode. 🙄

But wait, not all hope is lost. There’s still a glimmer of light at the end of this potentially very long and very steep tunnel.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

Let’s be real: the daily chart looks like a rollercoaster ride gone wrong. Bitcoin’s been plummeting like it’s trying to set a world record, but here’s the twist – the 200-day moving average is like that one friend who always catches you when you trip over your own feet. Right now, it’s stopping Bitcoin from falling further, somewhere near the $80K support level.

And what’s next? Well, assuming this support holds up, a bounce back to $90K seems almost too easy. But, if Bitcoin decides to take the plunge and break the support, don’t be surprised if we’re looking at a nosedive down to around $74K. Fun times ahead, right? 🥴

The 4-Hour Chart

Here’s where it gets a bit more exciting: the 4-hour chart shows a bit of a recovery. It’s like a mini miracle! The market bounced off the $80K mark, and the RSI (which sounds like a complicated math formula, but really, it’s just a fancy tool) is showing signs of life, predicting this tiny rally before it even happened. Go team!

But hold your horses – don’t start popping champagne just yet. Until the price gets back above $87K, the bullish party is on hold. It’s all about making higher highs and lows, people. Patience, patience! 🍾🥂

Sentiment Analysis

By Edris Derakhshi (TradingRage)

Funding Rates

Ah, the futures market. Always fun to analyze, and today it’s telling us something interesting. The funding rates – which are basically a fancy way of saying “who’s winning the battle, buyers or sellers?” – are showing that sellers are going all in on leveraged shorts. Not exactly a sign of good news… or is it? 🤔

Here’s the plot twist: while this aggressive selling looks ominous, it could also mean that the downtrend is about to meet its match. A small bullish pullback could trigger a short-liquidation cascade, and before you know it, Bitcoin’s back on its feet. The next few days could determine if we’re heading into a glorious recovery or just more sad, sad selling. Hold on tight, folks!


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2025-03-02 17:29