Bitcoin Retraces 60K Mark For Third Time: A Prelude To 56K AheadBitcoin Retraces 60K Mark For Third Time: A Prelude To 56K Ahead?
Bitcoin Price retraced $60K for the third in The last two weeks making it weaker.
The BTC price may crash towards the $56.5K if loses bulls fail to hold near the psychological $60K level.
At the time of writing, Bitcoin was exchanging hands close to $60,670 recording a negative intraday development of 2.66%.
Bitcoin lost traction after suffering close to GETTEX:64K and loomed back towards the psychological level of $60K. The daily chart reveals that BTC price has retraced the $60K level for the third time in a short span of 10 days making it a weaker support.
Moreover, the increased volume inflow points to a rising sellers interest which might be a demotivating scenario for the BTC bulls. Furthermore, there has been an accumulation in the long term holders for the past two months indicating an improved scenario.
Let's club all the data and process them to reach a conclusion where the BTC price may lead from now. Let's try to find out whether BTC may crash towards $56K or take a rebound again towards the $64K.
Bitcoin Sees Accumulation In the Long Term Holders!
The recent price rejection of BTC from GETTEX:64K has added a risk of a breakdown below the $60K level. The multiple retracement of $60K in a very short span of time highlights a strong selling pressure from the upper levels.
Moreover, there has been a notable shift in the volume inflow along with the price drop. The transaction volume has surged by 10% a day to $24.9 Billion. The rising transaction volume points to an increased supply.
Furthermore, As per the data obtained from Glassnode, Despite BTC suffering selling pressure in the last month there has been a net accumulation by long term holders for the first time this year. It might be possible that the long term holders might be accumulating the lows. However, it has not left any positive impact on the BTC price as of now.
BTC Technical Outlook?
From a technical point of view, Bitcoin price suffered rejection from the 20 day Exponential moving average near GETTEX:64K indicating a sellers domination in the short term. The BTC price was currently headed towards the lower side and may slide till the 200 day EMA at $58K if it breaks below $60K.
At the time of writing, the RSI line was placed close to 35.9 points and that of the SMA line was placed at 35.71. Both the lines were placed below the mean and were headed downwards indicating a negative stance. Moreover, a bearish crossover between both the lines was about to happen adding confirmation to it.
What’s Next For BTC: 56K Or 64K?
Bitcoin price recent rejection from GETTEX:64K suggests a potential drop below the $60K mark as the price has made multiple retracements in the last 10 sessions. It suggests an increased seller's dominance. Moreover, the transaction volumes have risen by 10% to $24.9 billion, signaling a supply increase. Despite the sell-off, the long-term holders seemed to accumulate in the last month.
From a technical point of view, Bitcoin's rejection from the 20-day EMA hints at short-term seller control, with a possible decline to the 200-day EMA at $58K if it falls below $60K. The RSI and SMA line were placed below the mean, with an impending bearish crossover, adding to a bearish outlook.