What’s Next For Bitcoin Price After A Decisive Breakdown From $60k?

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As a seasoned crypto investor with a keen interest in Bitcoin’s price movements, I find the recent downswing disheartening but not entirely unexpected. The two long red candles on the daily chart, accompanied by the significant drop in price and market cap, are clear indicators of intense selling pressure.

Over the past two days, Bitcoin‘s price has experienced significant selling, as indicated by the two extended red bars on the daily chart. The value dropped from $64,714 to its current level of $56,921, resulting in a decrease in market capitalization to approximately $1.28 trillion. Factors contributing to this decline include outflows from Bitcoin ETFs and apprehension regarding the Federal Reserve’s upcoming interest rate decision. It remains to be seen if this correction will continue below $50,000.

Is Bitcoin’s Buy-the-Dip Opportunity Still Valid?

What’s Next For Bitcoin Price After A Decisive Breakdown From $60k?

For the past two months, Bitcoin’s price has maintained its value above the significant threshold of $60000. This level is not only psychologically important but also technically reinforced by various factors such as the 100-day moving average, the 23.6% Fibonacci retracement level, and the lower boundary of a triangle chart pattern.

Despite a significant intraday loss of 6.1%, Bitcoin’s price fell below the previously mentioned support level, providing sellers with an opportunity to boost their positions in this asset. If selling pressure continues, the downtrend may extend by approximately 11%, potentially reaching the next substantial support at $50,600 – which aligns with the 38.2% Fibonacci retracement level.

If Bitcoin were to pull back and reach the 50% Fibonacci level, currently around $44,838, this retreat could be viewed as normal and even beneficial. It might pave the way for renewed buying pressure and a continuation of the bullish trend. Therefore, the chance to buy at a lower price persists for Bitcoin investors.

Is Bitcoin Setting Up for a Bullish Breakout? Analyzing Past Halving Cycles

Examining Bitcoin’s past behavior around halving events, Alicharts, a well-known trading analyst, has identified fascinating trends in the market. According to this analysis, after each halving event, Bitcoin experienced extended periods of price consolidation: 189 days in 2016 and 87 days in 2020, preceding significant bullish surges.

During the past two #Bitcoin halvings, the cryptocurrency experienced prolonged periods of price stability following the events. Specifically, in 2016, Bitcoin remained relatively unchanged for approximately 189 days, and in 2020, this phase lasted for about 87 days, prior to the beginning of the subsequent bull markets.
So far, $BTC has consolidated for 60 days!
— Ali (@ali_charts) April 30, 2024

For the past 60 days, Bitcoin has displayed a consolidation pattern that resembles previous halving events. Following historical trends, it’s possible that a new uptrend could emerge within the next month.

Technical Indicator 

  • Exponential Moving Average: The first bearish crossover between 20 and 50 daily EMAs after nearly seven months hints at a possibility for extended correction. 
  • Relative Strength Index: The daily RSI slope on the verge of entering an oversold region could trigger a minor bullish pullback to replenish selling momentum.

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2024-05-01 20:50