With a bearish note this week, the selling pressure in the crypto market increases at a quick pace. Bitcoin price takes a nosedive, falling from the peak of $70,000 to under $62,000. As the bears pick up pace, the pressure over the critical support levels warns of a crash ahead.
Will the 10% drop this week extend into a massive correction wave in the coming days? In our BTC price analysis, let’s try to find out how low the Bitcoin price will fall before the next reversal.
Bitcoin Price Performance
With a bullish failure to sustain above $70K, the trendline breakout gets delayed and the Bitcoin price prediction of $100,000. Starting a negative cycle in the channel part of a flag pattern, the BTC price crumbles this week.
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Furthermore, the bear cycle drops the Bitcoin price under the 50% Fibonacci retracement level drawn over the sideways trend. Putting a threat over the $60,000 support level, the bearish engulfing of a 6% overnight fall breaks the support trendline of the previous recovery.
The MACD and signal lines give a bearish crossover, with the daily RSI line falling under the 50% line and approaching the oversold boundary. Hence, with a sharp increase in supply pressure, the momentum indicators signal a bearish road ahead.
Currently, the BTC price trades at $61,700 with an intraday move of 0.46%, forming a dragonfly doji candle. Hence, the chances of a bearish halt over the weekends are optimistic for Bitcoin price.
Where is the BTC Price Headed?
As per the Fibonacci levels and the declining support trendline, the downfall in the BTC price will be intense next week. The following technical supports are at $55,582, and the support trendline is underneath it.
However, the $60,000 is a crucial psychological support capable of absorbing major supply inflows. Hence, a potential recovery is possible next week if Bitcoin sustains dominance over $60,000 to start an underlying sentimental shift.
A bullish cycle in the Bitcoin price will likely test the $70,000 mark and the overhead resistance trendline.
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