BTC Reclaimed Key Support Zone After Dropping To $34000: Analysis

BTC reclaimed key support zone right after it dropped to the ,000 level thanks to the extreme correction earlier today.
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Over the span of 12 hours, the cryptocurrency dropped from the $41,000 region to $34,000 on some exchanges, losing 15% over the span of the rally so let’s read more in our latest bitcoin news today.

The cryptocurrency bounced to the upside and reclaimed a key support level according to the analysts. BTC faced an extreme correction earlier today and in the span of 12 hours, the cryptocurrency dropped from the $41,000 price range to lows of $34,000 losing 15% in that time. Many think that this is only a start of a large correction and even when the crypto was near new lows, the funding rates and the premiums were extremely high which implies a continuation of this downside trend will become highly likely.

BTC swiftly bounced to the upside but the buyers stepped in as well. The cryptocurrency reclaimed a key support level as per a  technical analyst. Another trader shared a chart right after the recovery and noted that BTC reclaimed key technical support of the 15-minute chart. While it is not the end of all of the support levels, the analysts are optimistic that this technical occurrence will help it go on a new recovery. BTC does face some overhead resistance which could put an end to the ongoing recovery.

The on-chain data shows that the ongoing rally is becoming overheated and that a short-term correction on medium-term consolidation could follow suit. Philip Swift who is an on-chain analyst noted that the cryptocurrency is getting into the overheated levels per one key on-chain focused indicator. He said:

 “I am starting to feel that the market is approaching overheated levels now. One data point to observe is MVRV Z-score, which looks at extremes in the data sets between Market Value and Realised Value… We can see that when the z-score enters the red zone it signals a market top. We are not there yet but a few more parabolic days up for price and we will be.”

As BTC reclaimed key support zone, it has long faced corrections during the bull markets. Back in 2017, the coin pulled back by 20 or 30% before moving to new all-time highs.