Bitcoin Price Update: Potential for BTC to Drop Below $60K Once More?
Bitcoin is currently undergoing a downward trend, with its price failing to sustain a rally above $70,000. This raises questions about whether the bull market has hit a standstill or if it’s just a temporary adjustment.
In terms of technical analysis, the daily chart reveals that Bitcoin has struggled to surpass the $75,000 resistance level on multiple occasions and is presently on a decline. Although the $65,000 support has been breached, the critical $60,000 level is currently holding firm. Additionally, the 200-day moving average sits around $57,000, potentially providing support should the $60,000 level falter. The overall trend remains bullish as long as BTC trades above its 200-day moving average.
Looking at the 4-hour chart, there was a brief dip below the $60,000 support level recently, followed by a quick recovery above it. This behavior, known as a fake breakout, could signal a push towards the $65,000 mark in the near term. However, the Relative Strength Index (RSI) still indicates momentum favoring sellers, with values below 50%. Hence, a drop below $60,000 remains a possibility.
On-chain analysis, an essential aspect in market reversals, shows the Bitcoin whale ratio metric, which gauges the ratio of significant deposits to exchanges, assuming they belong to whales. Elevated readings suggest aggressive coin deposits by Bitcoin whales, likely for selling purposes. Recent data indicates the whale ratio has surged above 0.5, a substantially high level, indicating significant whale-driven selling. If this trend persists, Bitcoin’s price could experience further declines due to an excess supply scenario.
In conclusion, the current market conditions suggest a cautious approach, with technical and on-chain indicators pointing towards potential downward pressure on Bitcoin’s price. Traders and investors should closely monitor key support and resistance levels to navigate the evolving market dynamics effectively.
