Within the past 24 hours, Bitcoin [BTC] bounced from a local low of $57,800 to $60,536. This 4.73% bounce has begun to recede, and the leading crypto was trading at $60,048 at the time of writing.
On Tuesday, June 30, close to $410 million worth of leveraged positions were liquidated across the market. This included $8.3 million worth of Worldcoin [WLD] positions, with $8.06 million worth of longs alone.
Worldcoin traders were willing to go long but have been met with relentless losses over the past two weeks. The altcoin has fallen from $0.7229 to $0.3686, a 49% depreciation within a fortnight.
Yet, there’s reason for swing traders and investors to be bullish.
Worldcoin bulls have the potential to fight off the sellers
The rally above $0.65 in June brought about a bullish swing structure break for WLD. Since then, a deep correction has come about. The OBV was at the June lows once again, and the RSI was falling toward the oversold level at 30.
Yet, from a structural point of view, the trend remained bullish for the altcoin. Moreover, it has fallen into the golden pocket between the 61.8% and 78.6% Fibonacci retracement levels.
Moreover, despite the OBV’s deep drop, the CMF signaled short-term stability. If the CMF drops below -0.05, the OBV loses the local low, and Worldcoin prices fall below $0.333, a bearish shift would become more likely.
Traders’ call to action- Cautious bullishness
The 4-hour chart showed that this lower timeframe’s latest impulse move to $0.723 originated from $0.416. This short-term support has been ceded without much of a fight. It appeared likely that the $0.333 support would soon be tested.
The technical indicators were unanimously bearish on this timeframe for the past two weeks of correction.
The liquidation data revealed that many of the magnetic zones built up over the past month have been swept and cleared, with $0.348 being the next to watch out for.
As things stand, the drive southward, which has been forced by steady waves of liquidations and forced selling, could soon be ending.
Worldcoin traders and investors have reason to be cautiously bullish, but a Bitcoin sell-off could negatively impact WLD trends. Therefore, a move back above $0.416 could be a safe trigger for the buyers.
Final Summary
- The Worldcoin correction measured just over 49% in the past two weeks, a large figure that has impacted holder sentiment.
- Despite the large drawdown since June’s high, buyers have another chance to keep the higher timeframe upward trend going.