Why Did the Price of Bitcoin Fall Below $60K? Is There a Possibility of BTC Price Plummeting to $55K Over the Weekend?
Bitcoin’s recent gains have been wiped out, with its price falling below the critical $60,000 level. After briefly surpassing $64,000, it dropped to a low of $59,900, a significant decrease of over 3% within 24 hours. This is the lowest point it has reached since March. Currently, it is hovering around $60,400.
On the Binance exchange, the BTC-USDT pair, which is the most active Bitcoin trading pair, has a large number of buy orders below $60,000. This indicates a strong market demand at these lower levels, potentially preventing further immediate losses.
Despite this, Bitcoin has experienced a decline of over 15% from its recent peak, and altcoins have also suffered, with dips ranging from 40% to 50%. This pattern of decline is similar to previous corrections in bull markets, according to Glassnode data. However, major investors seem hesitant to buy the dip.
Technical analysis using the Wyckoff method suggests that Bitcoin may face further declines. Stockmoney Lizards’ analysis indicates that Bitcoin is currently in the “sign of weakness” phase of the Wyckoff Distribution Model, which often leads to a reduction in demand and a potential price drop.
External factors, such as the Federal Reserve’s high interest rate policy and increasing tensions from the Iran-Israel conflict, are also contributing to investor risk aversion. Since the conflict began on April 12, Bitcoin ETFs have seen nearly $150 million in outflows, indicating a general move away from riskier assets.
From a technical standpoint, Bitcoin’s price has retreated from the $70,000 resistance level and is approaching a retest of the $60,000 support zone. A break below this level could result in a significant decline towards $55,000.
On the other hand, if Bitcoin manages to surge past $68,000, it could reach new highs. However, the Relative Strength Index (RSI) is currently below 50%, indicating a high likelihood of a breakdown and potentially severe market consequences.
Tags: Bitcoin