Bitcoin Bulls Exhaust After Week Long Rally, Stock Markets Too Bleed Post Stimulus Deal Agreement

Published by
Bitcoin Bulls Exhaust After Week Long Rally, Stock Markets Too Bleed Post Stimulus Deal Agreement

Bitcoin finally showed signs of exhaustion after registering the highest weekly candle of over $4,000 on its way to a new all-time high of $24,209. The top cryptocurrency touched its new all-time-high today followed by a market correction retracing its price to as low as $22,473. Bitcoin was on a song after crossing the $20,000 key resistance, maintaining its position above $23,000 for almost three days against all odds.

Source TradingView

A market correction was on the cards ever since bitcoin went past its previous all-time-highs, but the tremendous buying spree of new institutional giants such as Grayscale, MicroStrategy, and Square Inc, kept bitcoin’s bullish momentum strong. Tom DeMark, a crypto analyst by profession has predicted that the bulls would exhaust by the weekend based on his time model. He explained,

“Although it appears treacherous to take such a stance, here is what our combined timing models are suggesting about Bitcoin at this time, that the top cryptocurrency would see a pending upside trend exhaustion,”

He added,

“The prior instances in which this long term model has spoken include the precise December 18, 2017 high, the precise low day December 14, 2018, and then the precise June 26, 2019, high day,”

Advertisement

Stock Markets & Crypto Market Bleed Alike Despite Stimulus Deal Finalization

The US Congress finally came to an agreement over the long-pending stimulus package approving a $900 billion stimulus which would also provide for $600 stimulus checks to citizens. The long-awaited stimulus deal was believed to be the reason behind the recent price rally in the stock markets seeing new record highs. However, the market reaction in the wake of the stimulus deal finalization tells a whole different story.

The crypto market was no different as along with bitcoin, most of the altcoins were also in red seeing a sharp retrace against the gains made over the past week. The top cryptocurrency is currently holding $22.5 K which is a key support level and considered to be a whale cluster support area. Holding the ground would be vital for the top cryptocurrency as per popular crypto analyst Joseph Young.

 

Advertisement

$474 Million Bitcoin Longs Liquidated in Just 4 Hrs

Clearly, the streets are red in crypto today and as per the latest data nearly $474 Million Bitcoin long positions were liquidated in just a span of 4 hours. Many analysts were predicting the over-leveraged Bitcoin positions above $23,000 and it seems they just fell like a domino with no major support so far.

$474 Million Liquidation Bitcoin

 

The RSI on the weekly chart is still above 80 and shows the correction might not be just over. Though the long term technicals still look good for Bitcoin but in short term a very high volatility and downward movement is expected.

 

Advertisement

Share
Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Trump-Backed World Liberty (WLFI) Plans RWA Tokenization Paired with USD1 Stablecoin

Trump Family's World Liberty Financial has unveiled big real-world asset (RWA) tokenization plans on Wednesday,…

October 1, 2025
  • 24/7 Cryptocurrency News

Stripe Eyes U.S. Banking Charter, Pioneers One-Click Stablecoin Issuance for Firms

Fintech giant Stripe has unveiled a suite of tools to enable businesses to tap into…

October 1, 2025
  • 24/7 Cryptocurrency News

Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder

Metaplanet has expanded its Bitcoin portfolio with another purchase. The Tokyo-listed firm is now the…

October 1, 2025
  • Bitcoin News

BREAKING: Nasdaq Files with US SEC to List BlackRock Bitcoin Premium Income ETF

Nasdaq has officially filed to list and trade BlackRock iShares Bitcoin Premium Income ETF with…

October 1, 2025
  • 24/7 Cryptocurrency News

Mr Beast, Whales Buy ASTER Token Amid 20% Crash, What’s Next?

While the ASTER token has crashed 20% in the last 24 hours, to test the…

October 1, 2025
  • 24/7 Cryptocurrency News

Breaking: U.S. Government Shuts Down After Congress Fails to Pass Funding Bill

The U.S government has entered its first shutdown since 2019 after lawmakers failed to reach…

October 1, 2025