Bitcoin Price Analysis: After Correcting, BTC Faces the Critical 200-MA Again

[RSRS]

The bearish divergence appearing on the BTC 4-hour chart for the past week managed to form a local top at $46.7k. BTC fell to a near-term low at $43.8k, finding support just above a key downtrend.
As we reported earlier, the recent dip below the 200-day moving average puts BTC in a tight spot as it is important to see a strong weekly close above that level. Making a weekly close above it, alongside the 21-week moving average, will flash a very bullish technical buy signal of the re-entry into bull market continuation. So far, it’s good to see BTC find support at the downtrend line, with a push back above the 200-day moving average.

What Happened During the Pullback?
The near-term pullback had less aggregate spot volume, signaling weak selling pressure. Most importantly, on-chain data by CryptoQuant showed consistent spot exchange outflows, no major build-up in exchange reserves, no major signal of large entities selling, with miner reserves continuing to increase. This strongly suggests that the weak hands got flushed out, as shown by the long liquidations on derivative platforms.

Long liquidations increased as BTC fell but eventually cooled off as short positions began piling on. Earlier today, BTC started pushing higher, and shorts began to get liquidated by the hour.

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