Bitcoin has lost all of last Saturday's gains and is trading below the critical $60,000 mark as of this Wednesday morning. After briefly rising above $64,000 today, it plunged to a low of $59,900 – a sharp decline of over 3% in just 24 hours and reaching its weakest point since early March. At press time, the price is around $60,400.
Current trading dynamics
On the Binance exchange, the most active Bitcoin trading pair (BTC-USDT) has a large number of buy orders below $60,000. This outweighs sell orders, indicating strong market demand at these lower levels that could prevent further immediate losses.
Nonetheless, Bitcoin has fallen by more than 15% since its recent peak, and altcoins have not been spared either, experiencing drops of between 40 and 50%. According to data from Glassnode, such declines reflect typical behavior in previous bull market corrections. However, despite the visible buying zones, large investors appear to be hesitant to buy when prices fall.
Technical analysis and external factors
The Wyckoff method, a popular technical analysis tool, also points to possible further declines. Stockmoney Lizards' recent tweet analysis suggests that Bitcoin is currently in the so-called “weak sign” phase of the Wyckoff distribution model; A period often characterized by a decline in demand, potentially leading to a decline in prices.
Also Read: What’s Next for Bitcoin Price: Crash or Rise? Top analyst sounds the alarm
This is exacerbated by external economic factors such as the Federal Reserve's ongoing high interest rate policy and increasing tensions caused by the Iran-Israel conflict, which are leading to risk aversion among investors.
Since the Iran-Israel conflict began on April 12, Bitcoin ETFs have seen outflows of nearly $150 million, indicating a broad flight from riskier assets.
From a technical perspective, the price has been pushed back from the $70,000 resistance level and is heading towards a retest of the $60,000 support zone. A break below this level could likely result in a sharp decline towards the $55,000 level.
Read more: Why Bitcoin price is crashing? Here are the main factors that influence BTC price
On the other hand, if Bitcoin can rise back above $68,000, reaching new highs could be imminent. However, with the Relative Strength Index (RSI) currently below 50%, the likelihood of a collapse remains high and could potentially have serious consequences for the market.
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