Bitcoin
How Low Could BTC Price Fall in This Crypto Market Crash
With a 1.68% drop in the total market capitalization of the crypto world, Bitcoin continues to decline with an increase in supply pressure. Although 90% of Bitcoin HODLers make a profit, the downtrend warns of a constant drop in this percentage.
Furthermore, nearly $500 million long liquidations in the crypto market reveal a strong downside. However, 70% of HODLers have been in the game for over a year, revealing the underlying trust in investors.
This week, with the opening bells in the Asian market, Bitcoin marks a 1.10% drop and trades slightly above the $65,000 level. BTC price sustains this level with a lower price rejection from the $64,050 mark, discovering demand at lower levels.
However, over the last ten days, Bitcoin has struggled to display any significant bullish candles and is down almost 5%. Will the ongoing fight for a comeback fail to sustain above $65,000 this week? How low can BTC price fall in this crypto market crash? Let’s take a look at the price analysis and find the Bitcoin Price Prediction in this market crash.
Bitcoin Price Performance
After falling within the flag pattern, BTC price breaks below the support trendline and the 50D EMA. With this drop, bullish players are losing hope as the inverted head and shoulders pattern fails.
Furthermore, with the completion of the short-term recovery, the downtrend is down 7.62% in the last twelve days. As the lower formation continues with an increase in trading volume, reinforcing the bearish cycle, BTC price is under extreme selling pressure.
At the moment, Bitcoin is trading at $65,777 with a long tail formation on the daily candle, revealing a bullish return on the shorter time frames.
Do derivatives detect chances of reversal?
Despite a positive funding rate of 0.00114035, open interest has been declining in recent days. Currently, IO is at US$17.616 billion, down 2.63% in 24 hours and 4.88% in the last week.
Rising funding rates signal optimism in long traders, but declining OI reveals profit booking and/or leveraged liquidations of long positions. This reveals a paradox of cautious optimism in the market.
If cautious traders slowly start to gain traction, Bitcoin price could reverse from the $65,000 level.
How low will Bitcoin go?
As the fall in the crypto market continues, Bitcoin price struggling at the $65,000 level warns of further corrections. However, with the rejection of lower prices with peaceful derivatives data, the underlying confidence in bullish traders is increasing.
Hence, an intraday bullish support above the $65,000 level could result in a bullish reversal in Bitcoin price. Optimistically, the bull run from this support could challenge $70,000 by the end of this week, undermining the recent correction.
On the downside, a correction below $65,000 will be fatal for Bitcoin and altcoins, fueling the bearish run. In this case, the next dominant support level in demand is $60,070, a further decline of 7%.