Bitcoin Falls 20% : Analysis and Trading Outlook**
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Bitcoin recently saw a 20% drop, following a prolonged correction from its March 2024 all-time high of $74,000. A strong bearish signal was evident in early March, marked by the highest single-day put volume in years. Since then, Bitcoin has made lower highs and continued a downward trend.
There are two possible bullish signals traders should watch:
1️⃣ **Oversold indicators** that suggest a reversal.
2️⃣ **Bitcoin trading above $71,000**, the level where the crash began in August.
As long as Bitcoin remains below this level on a weekly/monthly basis, the market stays bearish. A higher low with lower volume could indicate the start of a new bullish phase.
Advice for Traders and Investors : Monitor Bitcoin's movement around the $71,000 level and look for oversold signals or trend reversals. Adapt to the evolving market conditions and avoid portfolios trading at high resistance levels.