White it remains unclear why after topping 58000 USD BTC dropped 10000 USD within 48 hours, Cryptoquant points out that prior the pullback large deposits have been moved to Central Exchanges.
The sudden plunge must be painful for some 650.000 traders who were liquidated within the last 24 hours (according to Bybt), but the move can be considered as a healthy. A further advance of Bitcoin would have just caused even more pain to the downside. There were a couple of indications which came across which indicated a selloff
•RSI was in overbought territory which is not necessarily a sell signal but in combination with an existing divergence on RSI, that is a strong signal
•Trading volume declined while BTC increased in price. I consider this as a strong indication since this doesn’t happen to often (On Balance Volume as technical indicator)
•Elliot wave theory suggested a rise to 57000-58000 USD with a drop to the support zone of around 48000 USD prior advancing further.
Bitcoin currently trades at his support zone at around 48000 after bouncing of its 25-day moving average at around 45000. The setup looks not too concerning yet. There is the possibility that Bitcoin will test the 45000 USD level again but the buying power at 45000 was quite convincing.
As long as 45000 will not be broken, the uptrend remains valid - so do not panic.