Why Did Bitcoin Price Drop Below $70,000 And Is The Bleeding Over? (Bitcoin Price Analysis)

Bitcoin price has struggled to get close to its all-time high of $75,000 and is still consolidating.

On Friday, the cryptocurrency fell below $70,000, and if the current level supporting the price is broken, an even deeper correction could be expected.

Technical Analysis

By TradingRage

The daily chart

In the daily time frame, the price has been holding around the upper limit of the large descending channel, failing to break it upwards with momentum. Currently, the $69,000 support zone is holding BTC, preventing it from falling back inside the channel and towards the $60,000 level.

If the market somehow breaks above the $72,000 resistance level, a rally to the record high of $75,000 and beyond would be imminent.

Source: TradingView The 4-hour chart

Looking at the 4-hour chart, things look dicey for Bitcoin. An ascending channel is currently forming around $70,000. The price has already tested the higher trend line of the pattern and the $72,000 resistance level twice. It was decisively rejected and is retesting the $69,000 support level.

A break from this level could cause even more trouble. If the pattern breaks to the downside, a deeper drop towards $60,000 would likely materialize in the short term.

With the RSI also below 50%, the bearish scenario seems likely.

Source: TradingView Sentiment Analysis

By TradingRage

Open interest

As the price of Bitcoin fails to reach a new all-time high, investors are looking for a culprit. While the spot market metrics look solid, the futures market may be responsible.

This chart presents Bitcoin open interest, which measures the number of open futures positions across all exchanges. The higher the open interest, the more likely a liquidation cascade.

A bearish divergence has formed, with open interest hitting a recent all-time high and price not. This has resulted in the correction that occurred yesterday. While it is still unclear whether the price can go higher, high open interest values ​​are usually bearish for the market.

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