Bitcoin Price Analysis: Is BTC About to Crash Below $60K Again? – CryptoPotato

Bitcoin price has failed to sustain its rise above $70,000 and is now on a downward trend, raising the question of whether the bull run has stalled or if it is just a temporary correction.

Technical Analysis

by Trading Rage

Daily Chart

As the daily chart shows, Bitcoin price has failed to rise above the $75,000 resistance zone on multiple occasions and is now falling. It has also lost support at $65,000 but is currently holding at the crucial $60,000 level.

The 200-day moving average is also near the $57,000 mark and a drop below $60,000 could provide support to the market. Overall, the trend remains bullish as long as BTC trades above the 200-day moving average.

4 Hour Chart

The 4-hour chart shows that the price briefly dipped below the $60,000 support a few days ago but quickly rose back up to that level, a classic fake breakout move that could signal a move towards the $65,000 level in the short term.

However, the RSI is still indicating a value below the 50% level which means the momentum is still in favor of the sellers and hence, a drop below the $60,000 levels is still possible.

On-Chain Analysis

by Trading Rage

Bitcoin Whale Ratio

Analyzing Bitcoin’s on-chain metrics can be extremely useful in situations where the market appears to be reversing. This chart shows the BTC Whale Ratio metric, which measures the proportion of large deposits into exchanges and assumes they belong to whales.

Therefore, a high reading could indicate that large Bitcoin investors are actively depositing their coins into exchanges, possibly with the intent to sell.

It is clear that the whale ratio has recently reached a value above 0.5, which is quite high. This indicates that whales are selling large amounts of coins. Therefore, if this trend continues, the market may become overwhelmed with excess supply, which could cause the price of Bitcoin to fall further.