Bitcoin Price Falls Below $60,000 Amid Rising Volatility and Recession Concerns

The recent downturn in the Bitcoin ETFs market led to a bearish trend for Bitcoin (BTC) prices, causing a 3.65% drop on Sunday. This decline, coupled with escalating volatility and concerns about a potential U.S. market recession, has resulted in increased supply pressure.

Despite attempts, the BTC price has struggled to surpass the 50-day Exponential Moving Average (EMA), which serves as a dynamic resistance level. This raises questions about whether Bitcoin will be able to reclaim the $60,000 mark in the upcoming week or if a further decline to $50,000 is inevitable.

Bitcoin’s price performance has been a rollercoaster ride, with a significant surge from the support trendline enabling BTC to reclaim the 200-day EMA and hit the $60,000 milestone. The recovery rally following Black Monday facilitated a V-shaped reversal for Bitcoin, boosting overall market sentiment.

However, the bullish momentum faltered shortly after a 12% surge on Thursday, leading to a pullback from the 50-day EMA. This retracement intensified on Sunday, resulting in a 2,227-point drop and pushing the BTC price below $60,000 to $58,515, with an intraday Doji formation observed during Asian market hours.

The recent surge in supply pressure has triggered a wave of liquidations, totaling $156.48 million, with long positions accounting for $123.74 million and short positions at $32.74 million. The liquidations ratio stands at nearly 1:3, reflecting a prevailing bearish sentiment in the market.

Despite the prevailing bearish sentiment, the derivatives market offers a glimmer of optimism, with a 95% increase in trading volume to $49.79 billion. The Open Interest has decreased by 2.74% to $27.58 billion, signaling cautious optimism among top Binance traders who anticipate a continuation of the bullish trend in BTC price.

Technical indicators suggest a mixed outlook, with the daily Relative Strength Index (RSI) struggling to surpass the halfway mark, indicating a potential pullback. Additionally, the BTC price’s retreat from the 50-day EMA, breaking below the 200-day EMA, raises concerns about a looming death cross scenario.

Amidst the volatile market conditions influenced by factors like the U.S. presidential elections and recession fears, Bitcoin’s price faces uncertainty. While a correction could drive prices down to $50,000, the formation of a strong support level at this mark suggests a potential reversal. Moreover, with expectations of a rate cut before the U.S. elections, there is speculation that BTC price could surge past $73,000, potentially reaching a new all-time high before the end of 2024.