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Here’s Why Bitcoin (BTC) Price Could Skyrocket This Week!
After an intense bearish week, BTC price is struggling to maintain dominance at critical support levels. Breaking below the $56K level on Monday, the sell-off rally is gaining momentum.
With institutions contributing to the retail FUD rally, the broader market sentiment is fearful. However, some hope of a bullish reversal possibility is starting to emerge with lower price rejections and demand below the $56K level.
You can also check out our Bitcoin Price Prediction to determine the odds of BTC hitting the $100,000 milestone this year.
Will Bitcoin Crash Be Last Buying Opportunity Below $60K In 2024?
With a bearish breakout of an inverted head and shoulders pattern, BTC price is heading towards the psychological limit of $50K. As the downtrend continues, Bitcoin records a drop of 11.85% in the last eight days.
The fall stops below the 50% Fibonacci level at $56,310 with a bearish engulfing candle this Sunday. Currently, BTC price is trading at $55,232 with an intraday decline of 1.07% while making a low at $54,296.
The rejection of the lower price from $54K levels reveals two long-tail candles on the daily chart. Furthermore, the ongoing brawl at lower levels teases significant demand, hoping to absorb the incoming supply pressure.
On the 4-hour BTC price chart, dipping patterns reveal a bullish RSI divergence, strengthening the possibility of an uptrend for Bitcoin.
Bitcoin Network Hashrate Drop Reaches Critical Levels
Bitcoin network hashrate declines, which indicate declines in mining power, have 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 operating costs.
Historically, deep hashrate drawdowns have been correlated with major BTC price movements. The last such drop preceded a bullish reversal, suggesting that current trends could signal another significant price move. As Bitcoin price tumbles, the current drawdown could suggest a potential bottom or an impending bull run, adding a crucial element to market analysis.
Short Liquidations Raise BTC Price
Despite the initial $77M of long liquidations in the cryptocurrency market, the recovery rally is evident with increasing short-side liquidations. With $91M of bearish positions exiting the market, the Bitcoin rally is slowly but surely accelerating today.
Will Bitcoin (BTC) Price Survive Above $52,000?
In the ongoing bearish rally, BTC price is struggling to sustain recovery phases due to the immense oversupply. While the Mt.GOX payout has the potential to bring massive supply, the underlying demand is fighting against the FUD rally.
With multiple bullish signals emerging in the price chart, derivatives market, and On-chain data, Bitcoin seems set for a moonshot. In a bearish scenario, BTC price could test the $52K support for a moment. However, Bitcoin’s recovery could result in a surge towards $60,000 this week.
Read also: CRypto Market Analysis: Bitcoin, Ethereum & Altcoins Rising!