Selling pressure has rapidly increased across the cryptocurrency market this week as bearish sentiment sets in. Bitcoin price has plummeted, falling from highs of $70,000 to below $62,000. Pressure above key support levels signals an impending breakdown as bears gather pace.
Will this week’s 10% drop extend into a massive correction wave in the coming days? In our BTC price analysis, let’s try to find out how low the Bitcoin price will fall before the next reversal.
Bitcoin price performance
Bitcoin price prediction of $100,000 was delayed as bullish momentum failed to sustain above $70,000 and a trendline breakout was delayed. BTC price plunged this week as a negative cycle began to form in the channel portion of the flag pattern.
Additionally, the bear cycle pushed Bitcoin price below the 50% Fibonacci retracement level of the sideways trend. The 6% overnight drop resulted in a bearish engulfing pattern that broke the support trendline of the previous recovery, posing a threat to the $60,000 support level.
The MACD and signal lines have seen a bearish crossover, and the daily RSI line has fallen below the 50% line and is approaching the oversold border. Therefore, the momentum indicator is signaling a bearish move ahead as supply pressures are increasing sharply.
Currently, BTC price is trading at $61,700 with an intraday gain of 0.46%, forming a Dragonfly Doji. Therefore, the possibility of a bearish stop over the weekend is bullish for Bitcoin price.
Where is the BTC price heading?
According to the Fibonacci levels and the descending support trendline, BTC price will drop sharply next week. The following technical support is at $55,582 and the support trendline is located below it.
However, $60,000 is a key psychological support that is capable of absorbing large supply inflows. Therefore, a rally could occur next week if Bitcoin maintains its dominance above $60,000 and triggers a potential sentiment shift.
The bullish cycle in Bitcoin price could test the $70,000 barrier and the overhead resistance trendline.
