BTC Bears Target $60,000, But Fundamentals Remain Promising (Bitcoin Price Analysis)

Bitcoin price has failed to sustain its upward momentum and has yet to set a new record high above the $75,000 level. Given the current price action, an even deeper correction is likely.

Technical Analysis

By TradingRage

The daily chart

On the daily chart, the price broke below the $68,000 support level a few days ago. It has fallen back inside the large descending channel, making its recent breakout a false one.

The $60,000 support level looks like a valid target for the coming weeks, and the 200-day moving average trend around the $56,000 mark may be the next target for the worst-case scenario.

Source: TradingView The 4-hour chart

Looking at the 4-hour period, things seem more obvious. The price has been forming an ascending channel pattern around the $70,000 resistance zone. However, the channel is breaking to the downside, which is a classic bearish reversal indication.

Meanwhile, the RSI has entered the oversold region, pointing to a potential bear trap. Therefore, if the market moves back up quickly within the channel, the bearish scenario would fail and a bullish reversal could be expected.

Source: TradingView On-Chain Analysis

By TradingRage

Exchange reserve

While Bitcoin’s bullish momentum seems to be fading, things are going well in the background. This chart shows the BTC exchange reserve metric, which measures the amount of Bitcoin held in exchange wallets.

A decrease in the exchange reserve usually shows dominant demand, while increases are associated with excess supply.

The exchange reserve has seen a sharp decline recently, significantly since the price recovered from the $60,000 level in early May. While technicals do not favor a rally, the fundamentals of Bitcoin supply and demand look strong and could lead to higher prices in the coming months.

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