Bitcoin Price Drops Below $60K: What’s Next for Investors?
Bitcoin’s price has been consolidating above $60K over the last few months. Yet, the price has broken below the level today, and investors are in a state of panic, wondering if the bull market is over.
Technical Analysis
By TradingRage
The Daily Chart
- The price has created a large descending channel pattern since March.
- It has broken it to the downside, and the cryptocurrency is aggressively dropping toward the $52K support level.
- The 200-day moving average is also trending around the $50K mark.
- It could be Bitcoin’s last resort in case of a deeper decline.
- If the market drops below these levels, the downward pressure would intensify.
The 4-Hour Chart
- The price was rejected from the channel’s midline a few days ago.
- It has created lower highs and lows since, and has broken to the downside.
- The Relative Strength Index has entered the oversold region.
- A short-term rebound and pullback toward $60K can be expected before a potential continuation lower toward $52K.
On-Chain Analysis
By TradingRage
Bitcoin Exchange Whale Ratio
- Bitcoin’s price has been dropping since its rejection from the $75K level.
- Market participants are wondering when and whether the market will rebound.
- The Exchange Whale Ratio (with a 30-day exponential moving average applied) shows the ratio of exchange deposits by whales compared to all deposits.
- The metric has recently increased significantly.
- Whales have been rapidly depositing their coins in exchanges to potentially sell them, contributing to the recent correction.
- Expect the correction to stop if the whale ratio declines once more.
Hot Take: Stay Calm and Watch Closely 🚨
The recent drop in Bitcoin’s price may be causing panic among investors, but it’s essential to stay calm and analyze the situation carefully. Keep a close eye on the market indicators and be prepared for potential price movements in either direction. Remember that volatility is a common feature in the crypto market, and corrections are a natural part of the price discovery process. Stay informed, make rational decisions, and adapt your strategy as needed to navigate through uncertain times in the crypto space. 📈📉