Bitcoin forms a bullish engulfing candle close to the May 22 high, which aligned with the 0.382 Fib retracement and suggests a short-term price bounce.
RSI tests its earlier downtrend, and stochastic RSI has produced a bullish crossover, and both can signal continuation if confirmed above notable levels.
A $45.4M, 40x leveraged long position placed by a whale at $105K liquidation reflects rising confidence in Bitcoin’s upward momentum.
Bitcoin (BTC) is trading at $113,745 and saw a small gain of 0.11% in the last 24 hours. The asset has key support at the high on May 22nd, and technical indicators show signs of a potential short-term reversal.
BTC Bounces from Support, Key Indicators Turn Positive
According to CrypFlow, BTC has respected the May 22 high as support, aligning closely with the 0.382 Fibonacci retracement. The Fibonacci was drawn from the body of the candle’s swing low to the swing high, instead of the wick extremes. This alignment has provided a precise support zone.
https://twitter.com/_Crypflow_/status/1951922870063378862
The BTC daily chart is currently developing a bullish engulfing candle. A strong close on this candle could demonstrate a reversal pattern. The RSI is currently testing a downtrend line that has previously acted as resistance. A breakout above the line in the RSI could further the momentum to the upside.
Additionally, the stochastic RSI has crossed bullishly but requires movement above the 20 level for confirmation. This setup suggests that momentum may be building, although traders are waiting for further validation on the next candle close.
Whale Opens $45.4M Leveraged Long Position
Marc Shawn Brown reported that a major trader has opened a 40x long position on BTC, valued at $45.4 million. The liquidation price is placed at $105,000. This suggests high conviction in near-term bullish movement and indicates the trader expects BTC to avoid revisiting lower levels.
Such high-leverage positions typically influence short-term sentiment and may lead to increased market activity. The trade aligns with improving technical conditions, reinforcing optimism among speculative traders closely tracking momentum signals.
Price Holds Steady as Traders Monitor Bullish Setup
According to CoinGecko, BTC is seeing approximately $32.26 billion in trading volume over the last 24 hours, which shows some stable/prudent volatility. While prices haven't changed much, traders are cautious of the bullish engulfing candles, RSI behavior, and stochastic crossover to confirm where BTC is heading.
With support at the May 22 high holding and bullish signs emerging, BTC may be entering a short-term recovery phase.
