Following an intense bearish week, the BTC price struggles to sustain dominance at critical support levels. Dropping under the $56K level this Monday, the selloff rally is gaining momentum.
With institutions adding to the retail FUD rally, the broader market sentiment is fearful. However, some hope of a bullish reversal chances are starting to light up with the lower price rejections and demand under the $56K level.
You can also check out our Bitcoin price prediction to determine the chances of BTC hitting the $100,000 milestone this year.
Is Bitcoin Downfall The Last Buying Opportunity Under $60K in 2024?
With a bearish breakdown of an inverted head and shoulder pattern, the BTC price is headed to the $50K psychological mark. As the downtrend continues, Bitcoin registers a drop of 11.85% in the last eight days.
The downfall breaks under the 50% Fibonacci level at the $56,310 mark with a bearish engulfing candle this Sunday. Currently, the BTC price trades at $55,232 with an intraday drop of 1.07% while registering a low at $54,296.
The lower price rejection from the $54K levels reveals two long-tail candles in the daily chart. Further, the ongoing brawl at lower levels teases significant demand, hoping to absorb the incoming supply pressure.
In the 4H BTC Price chart, the dip formations reveal a bullish RSI divergence, bolstering the uptrend chances for Bitcoin.
Bitcoin Network Hashrate Drawdown Hits Critical Levels
The Bitcoin network hashrate drawdown, indicating dips in mining power, has reached levels last seen in December 2022. This metric reflects significant reductions in the network’s computing power, often due to increased mining difficulty or operational costs.
Historically, deep hashrate drawdowns have correlated with major BTC price movements. The last similar dip preceded a bull reversal, suggesting current trends could signal another significant price shift. As Bitcoin’s price crashes, the current drawdown may hint at a potential bottom or upcoming bullish phase, adding a crucial element to market analysis.
Short Liquidations Rise in BTC Price
Despite the early $77M worth of long liquidations in the crypto market, the recovery rally is evident with the rising short-side liquidations. With $91M worth of bearish positions exiting the market, the Bitcoin rally is slowly but surely picking up pace today.
Will The Bitcoin (BTC) Price Survive Above $52K?
In the ongoing bearish run, the BTC price struggles to sustain recovery phases due to the immense overhead supply. While the payout from Mt.GOX has the potential to bring massive supply, the underlying demand is fighting back against the FUD rally.
With multiple bullish signals arising in the price chart, derivatives market, and the On-chain data, Bitcoin seems bound for a moonshot. In a bearish scenario, the BTC price could test the $52K support for a moment. However, the recovery in Bitcoin could result in a surge back to the $60,000 this week.
Read Also: Crypto Market Analysis: Bitcoin, Ethereum, and Altcoins Show Gains!
