Markets
How Much Could BTC Price Drop During This Crypto Market Crash
With a 1.68% drop in the total market capitalization of the crypto world, Bitcoin continues to decline with increasing supply pressure. Although 90% of Bitcoin HODLers are profitable, the downtrend warns of a steady decrease in this percentage.
Additionally, a long selloff worth nearly $500 million in the crypto market reveals a strong bearish side. However, 70% of HODLers have been in the game for over a year, revealing an underlying confidence in investors.
This week, with the opening of the Asian market, Bitcoin marks a decline of 1.10% and is trading slightly above the $65,000 level. BTC price maintains this level with a lower price rejection from $64,050, revealing demand at lower levels.
However, over the past ten days, Bitcoin has struggled to exhibit a significant bullish candle and is down almost 5%. Will the ongoing fight for a comeback fail to hold above $65,000 this week? How Far Could BTC Price Drop During This Crypto Market Crash? Let’s take a look at the price analysis and find the Bitcoin Price Prediction in this stock market crash.
Bitcoin Price Performance
Following the fall of the flag pattern, BTC price moves below the support trendline and the 50D EMA. With this fall, bullish players lose hope as the inverted head and shoulders pattern fails.
Moreover, with the conclusion of a short-term recovery, the downtrend has decreased by 7.62% over the last twelve days. As the formation of lower highs continues with an increase in trading volume reinforcing the downcycle, BTC price is under extreme selling pressure.
Currently, Bitcoin is trading at $65,777 with a long tail formation in the daily candle, revealing a bullish return in shorter time frames.
Do derivatives detect the chances of reversal?
Despite a positive funding rate of 0.00114035, Open Interest has been on a downward slope in recent days. Currently, OI stands at $17.616 billion, down 2.63% in 24 hours and 4.88% over the past week.
Rising funding rates signal optimism among long traders, but falling OI reveals profit taking and/or liquidation of leveraged long positions. This reveals a paradox of cautious optimism in the market.
If cautious traders slowly start to gain traction, Bitcoin price could reverse from the $65,000 level.
How far will Bitcoin go?
As the crypto market slide continues, Bitcoin price, struggling at the $65,000 level, is warning of a further correction. However, with the weaker price rejection thanks to dovish derivative data, the underlying confidence in bullish traders is increasing.
Therefore, a bullish intraday hold above the $65,000 level could lead to a bullish reversal in Bitcoin price. With some optimism, the bull run from this support could challenge $70,000 by the end of this week, undermining the recent correction.
On the other hand, a correction below $65,000 will prove fatal for Bitcoin and altcoins, fueling the downtrend. In such a case, the next dominant demand support level stands at $60,070, representing a further decline of 7%.