BTC Bears Eye $60K Following Today’s Sudden Drop: Bitcoin Price Analysis

Bitcoin’s price has failed to make a new all-time high and is currently going through a correction. Yet, the bull market might still be far from over.

Bitcoin Price Analysis: Technicals 

By TradingRage

The Daily Chart

Bitcoin’s price has been on the decline over the last few days, following a drop below the $68K level and the bullish trendline. Currently, the cryptocurrency is testing the $65K support zone. If the market rebounds, a rally toward $68K and higher could be expected in the short term.

On the other hand, a drop below the $65K zone would likely lead to a further downtrend toward the $60K support level and, potentially, the 200-day moving average, located around the $57K mark.

Source: TradingView

The 4-Hour Chart

The price has been forming a falling wedge pattern on the 4-hour timeframe. It recently tested the lower boundary of the pattern around the $65K zone.

A breakout above this well-known formation could initiate a rally toward higher prices and even a new all-time high. However, if it breaks down, the decline could be aggravated, and a flash crash toward $60K would be expected.

Source: TradingView

On-Chain Analysis

By TradingRage

Miner Reserve

Miners have realized their profits during the recent Bitcoin uptrend. However, following the breakout above the $40K level, the selling pressure has increased significantly.

This chart demonstrates the Bitcoin Miner Reserve metric, which measures the amount of Bitcoin miners hold. Increases in this metric show accumulation, while decreases point to distribution.

The Miner Reserve has been on a steep decline recently, indicating that this important cohort of BTC holders has rapidly realized profits. While this is a natural behavior during a bull run, it can flood the market with excess supply and lead to a downtrend without sufficient demand.

Source: CryptoQuant

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Cryptocurrency charts by TradingView.

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