BTC Bear Eye $60K After Today’s Sudden Drop: Bitcoin Price Analysis

Bitcoin price has failed to make a new all-time high and is currently undergoing a correction. However, the bull market may still be far from over.

Bitcoin Price Analysis: Technical

By TradingRage

The daily chart

Bitcoin price has been on the downside for the past few days, after falling below the $68,000 level and the uptrend line. The cryptocurrency is currently testing the $65,000 support zone. If the market recovers, a rally towards $68,000 and above could be expected in the near term.

On the other hand, a break below the $65,000 area would likely lead to a new downtrend towards the $60,000 support level and potentially the 200-day moving average, located around $57,000.

Source: TradingView The 4-hour chart

The price has been forming a descending wedge pattern in the 4-hour period. It recently tested the lower limit of the pattern around the $65,000 area.

A break above this well-known formation could initiate a rally to higher prices and even a new all-time high. However, if it breaks, the decline could worsen and a fall towards $60,000 would be expected.

Source: TradingView On-Chain Analysis

By TradingRage

Mining Reserve

Miners have made their profits during the recent Bitcoin uptrend. However, after the break above the $40,000 level, the selling pressure has increased significantly.

This chart shows the Bitcoin Miner Reserve metric, which measures the amount of Bitcoin miners have. Increases in this metric show accumulation, while decreases point to distribution.

The mining pool has seen a sharp decline recently, indicating that this important cohort of BTC holders has quickly turned a profit. While this is natural behavior during a bull run, it can flood the market with excess supply and cause a downtrend without sufficient demand.

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