Here is the first critical support if Bitcoin falls below $60,000

The price of Bitcoin has fallen rapidly over the past few days after failing to hold above the $70,000 level. The market is currently approaching a fundamental level.

Bitcoin Price Analysis: Technical

By TradingRage

The daily chart

As evidenced by the daily period, BTC price has been in a downtrend since early June after a rejection of the $72,000 area. The price is approaching the fundamental support level of $60,000.

With the 200-day moving average around $58,000, a break below $60,000 could trigger a retest of the moving average. In general, the fate of the market in the medium term depends on the reaction of the price to these elements of support.

Source: TradingView The 4-hour chart

On the 4-hour chart, the large falling wedge pattern has finally broken to the downside and the price is aggressively approaching the $60,000 support zone. The relative strength index has also declined rapidly and is showing values ​​below 30% at the moment.

Therefore, BTC is currently oversold in the 4-hour period and a near-term bounce or consolidation at the $60,000 level is likely.

However, if the market turns lower, the $58,000 support zone would be the next potential target.

Source: TradingView On-Chain Analysis

By TradingRage

Short-term holder of Bitcoin SOPR

Although the price of Bitcoin has declined recently, many market participants are seeing their unrealized profits shrink. Meanwhile, some holders have realized their profits and exited the market before incurring losses.

This chart presents the Bitcoin Short-Term Holder SOPR, showing the ratio of profit and loss. Values ​​above one indicate investors are selling at a profit, while values ​​below one point are losses.

The STH SOPR is trending down, as is the price of BTC. Short-term holders are poised to take losses, which would happen if the market falls below $60,000.

However, this also happens at lows during a bull market. So, if we consider that the bull market is not over yet, the bottom could be very close.

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