Bitcoin continues to show weak signs as it dips below $18,000 in the last 4 hours. This is a significant drop from a rebound high of $18,600 during the opening of the markets today. Bitcoin is trading at $17,777.52, with a trading volume of $111.12B.Bitcoin is down by 10.07% after hitting an intraday high of $20,578.23 and since then, the market has repeatedly tested and failed at holding above $19,000.

BTC price action:Coinmarketcap

The glassnode market analyst tracks this dip as the result of crypto markets bleeding $130 billion in 12 hours as contagion continues to spread following this week’s FTX and Binance battle. The Twitter-based market analyst states that in a single day over $1B total amount of BTC was wiped out. Whilst this is a significant sum, it is certainly not the largest, with the 14-June sell-off hitting over $4.2B in losses, the largest in this cycle.

Bitcoin is currently forming a pullback on the moving average line, leading market analysts to believe that the dip may be temporary and can potentially rebound in the coming days. However,a bullish breakout on the 200-day moving average line is still needed to confirm a positive trend for Bitcoin in the long term.

Falling trendline forms on a 4-hour chart

There is a large gap in value between $20,900 and $22,100 for Bitcoin which created a powerful bearish imbalance. The pattern finally broke to the upside after reaching the 50% point of the imbalance. However, it was immediately rejected and consequently fell rapidly inside the flag.

A bearish divergence has also formed between the RSI and price, indicating that the current downward momentum may continue in the short term. Additionally, it is worth noting that BTC’s trading volume has increased significantly, indicating heightened market activity during this dip.

The market volatility has increased significantly as a notable price change may occur in the last 24 hours, with the Bollinger bands widening significantly.A switch in market sentiment may occur if Bitcoin manages to hold above the $18,000 support level and break out of the current.

Overall, while the dip below $18,000 may be concerning for some, it is important to remember that Bitcoin has historically shown resilience in bouncing back from dips and facing challenges in the market.

Moreover, the key support levels are present at $17,600 and $16,100 as well as resistance at $18,500 and $19,200 in the short term. Long-term investors should also keep an eye on the 200-day moving average line for confirmation of a potential bullish trend.