Market trembles as Bitcoin (BTC) continues decline

As a researcher with a background in technical analysis and experience in following Bitcoin’s market movements, I find myself cautiously bearish at the moment. The recent drop below $61,000 is concerning, especially considering the potential selling pressure from governments and Mt. Gox BTC holders.

The price of Bitcoin (BTC) has dipped below $61,000 recently due to growing concerns over possible additional selling by the US and German governments, as well as potential fresh supply from Mt. Gox creditors. However, it is uncertain whether this downward trend will persist or if we are currently nearing the bottom for Bitcoin.

Bulls or bears?

Bitcoin has been trading near its lowest point for the past ten days, hovering around the $63,000 mark. The battle between buyers and sellers is fierce in this price range, with no clear winner yet emerging as they duel it out from $63,000 all the way down to $60,000. It’s uncertain which group, the bulls or the bears, will ultimately prevail.

$BTC heading to $60,000 next?

As an analyst, I’ve observed that within the compact 4-hour timeframe, Bitcoin’s ($BTC) price is making a valiant effort to maintain its position above the crucial $61,000 support level. If this support holds firm for the ensuing days, then the short-term stochastic RSIs for the 4-, 8-, and 12-hour periods would have the opportunity to reset and subsequently generate renewed upward momentum for the price.

$51,000 is bearish case

According to the chart’s indication, the Bitcoin price is currently attempting to breach its support level. If this downward trend persists, the significant support levels to watch out for could be around $60,000 and then $58,000. A potential further drop may lead us to the price range of $51,000.

From my perspective as a crypto investor, taking a step back to assess the bigger trend, the weekly Bitcoin chart indicates a potential downtrend towards the $60,000 support level. There’s still some underlying support around $58,000 up to slightly above $57,000. However, if and when Bitcoin breaches this range, the next significant support level lies at approximately $51,000.

Can weekly stochastic RSI provide the bounce momentum?

Despite the current bearish trend, optimistic forecasts predict that Bitcoin’s price will rebound from its current level, ranging between $57,000 and $71,000. The weekly stochastic RSI could serve as the driving force behind this potential upward movement. Once it hits bottom, this momentum indicator may reverse direction as early as next week, triggering a significant price surge towards higher values for Bitcoin.

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2024-07-03 13:54