Highlights
- Bitcoin’s price fell from $67,250 to $62,751, a 6.6% drop influenced by post-halving corrections, Middle East tensions, and reduced availability in Spot BTC ETFs.
- Legal troubles led to significant price drops in Bitcoin and altcoins, triggering a $322 million-long liquidation and casting doubt on Bitcoin’s ability to reach $100,000.
- Despite attempts to rebound, Bitcoin faced continued selling pressure, weakening bullish patterns.
The cryptocurrency market dropped significantly this week, mainly because Bitcoin had a post-halving correction. The drop might be because of tensions in the Middle East and less Bitcoin in Spot BTC ETFs. Bitcoin’s price fell from $67,250 to $62,751, a 6.6% drop. Bitcoin has been on sale, with orders for 36,000 BTC on 20 big crypto exchanges. This is much more than what is available in the market right now. When people bought Bitcoin before, it was around the $62,000 mark. The question is whether BTC will maintain the $60K mark.
Legal Trouble Hits BTC
When Binance’s ex-founder, Chanpeng Zhao, got a four-month prison sentence, Bitcoin and other altcoins saw a big price drop. Along with this legal trouble, there was a $322 million-long liquidation in the crypto world. This legal stuff worried people, leading to Bitcoin’s lowest closing price in 60 days. Bears took over, and Bitcoin’s price briefly fell below $60,000. The bears breaking through important support levels cancelled out the bullish pattern on the daily chart. With this selling phase, a fear arises that the Bitcoin price won’t reach $100,000 as predicted.
Performance of BTC
With $95 million in long liquidations, Bitcoin could not bounce back for the fourth time from the $60,000 support zone. On the 30th of April, it dropped by 5%, causing a big bearish candle to break below the support zone. This made the bullish flag lose strength. This also suggests a possible downward reversal. Also, with more fear, uncertainty, and doubt (FUD), Bitcoin might drop even more. Technical signs like the MACD and RSI show that bearish momentum is slowly growing. The MACD and signal lines are going down, and the daily RSI is getting close to the oversold zone, hinting at a possible drop.
Bitcoin is currently trading at $57,523, and it dropped by 0.61% during the day, suggesting a small slowdown in selling. Also, the bearish feelings might ease soon because the four-month prison sentence of the Ex-founder of Binance, Chanpeng Zhao, is not as bad as people thought it would be.
Is A Turn-Around Possible?
Bitcoin dominance shows how much of the overall crypto market is made up of Bitcoin compared to other cryptocurrencies. With the recent selling, Bitcoin’s dominance over other coins will likely decrease in the next few weeks. Looking at the monthly chart, Bitcoin’s dominance is approaching a resistance trendline. This, combined with the sell-off, suggests a higher chance of Bitcoin’s price and dominance dropping. So, the higher price rejection seen in this month’s dominance candle warns of a possible reversal.
Despite the strong downward momentum fueled by sentiment, Bitcoin avoids closing below $60,000. There’s demand in this psychological zone, which counters the selling pressure. With the failed bullish flag pattern, there’s a higher chance of Bitcoin’s price dropping below $60,000. In that case, prices could decrease to $55,000 or $52,000 support levels. On the bright side, if the market can overcome short-term fear, uncertainty, and doubt (FUD), there is a chance of a reversal rally hitting the $68,823 mark.
Disclaimer: We are obsessed with cryptocurrency and love to write articles to express our thoughts. This article is for informational purposes and contains the writer’s personal opinion. Don’t consider it financial advice from the author or the CoinzBTC team. Do your research and think twice before making any investment decisions. CoinzBTC does not take responsibility for any financial losses.
