Bitcoin Dumps to 17-Day Low, But Key Metric Flashes Rebound Signal

Overview

Bitcoin's latest rejection at the $87,000 range wasn't just a small deviation from the asset's path forward, as it slumped by several grand to a multi-week low of just over $82,000. While the macro landscape remains gloomy, a popular technical tool has flashed a rebound signal.

Technical Analysis

Recall that the cryptocurrency challenged the $87,000 area on several occasions in late September and early October. It last jumped past it on Friday after the weaker-than-expected US jobs report. However, it crashed almost immediately by three grand. Nevertheless, the bulls stepped up in the following days, and BTC neared that level on Monday morning and was close on Tuesday.

Possible Reasons Behind the Drop

That's when the entire market landscape changed. As reported yesterday, BTC slumped by $2,000 in 20 minutes or so. One of the possible reasons behind this was the US government's decision to move a portion of its crypto holdings (BTC and BNB), some of which ended up on Coinbase. However, bitcoin didn't stop there, and the bears drove it further south earlier today to just over $82,000, its lowest price tag in over two weeks. This nosedive coincided with new reports that US President Donald Trump is not keen on making a permanent deal with Iran and even threatened to resume the strikes soon.

Rebound Signal

Bitcoin's major leg down triggered a popular technical tool, the TD Sequential, which flashed a buy signal on its hourly chart. The first sign came when the asset tapped the $83,000 support, even though it slipped further below that line before rebounding to it as of press time. Ali Martinez argued that the correction over the past 36 hours came after a sell signal from the same indicator, which reportedly happened when BTC stood near the $87,000 resistance on Tuesday.