• Bitcoin price settled at $22.4K, with a daily RSI retracing 2023 bull run
• Market analysts remain divided on chances of recovery from the flash crash
• Popular traders suggest mirror-like recovery for Bitcoin to produce inverted “Bart Simpson” chart structure
Bitcoin Price Settles at $22.4K
Bitcoin’s RSI is back at square one as the mood among traders becomes uncertain after 5% BTC price losses overnight. Market Update showed BTC/USD trading flat after an earlier flash crash saw $1,000 shaved off in minutes. At the time of writing, only a modest comeback had taken place, while opinions diverged as to how short-term price action would play out.
Analysis of Chances of Recovery
Concerns over the fate of Silvergate Bank exacerbated existing market cold feet to spark a margin call cascade to $22,000. Analysts remained divided over the odds of a recovery as Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading flat.
Opinions on Price Action
Risk-off Crypto Tony told Twitter followers that he had “locked in some profit here on my short at $23,200 and moved my stop loss into profit so it’s risk free”. Fellow trading account Daan Crypto Trades suggested that Bitcoin could see a mirror-like recovery to produce the inverse version of the classic “Bart Simpson” chart structure. Popular trader and analyst Pentoshi took a step back saying he “did not know” what might lie in store for markets.
Short Term Outlook Uncertain
Hopes for an inverse “Bart Simpson” on BTC were high but hopes were dashed when resistance was not reclaimed leading many traders to take profits quickly or move their stop loss into profit. The uncertainty in market sentiment has left many uncertain as to what will happen next with BTC/USD prices remaining largely stagnant throughout the day thus far.
As investors wait for more developments in terms of regulatory issues and institutional investments, speculation remains rampant that BTC could still experience further losses or head towards new all-time highs depending on which way investor sentiment shifts over coming days and weeks ahead.