Markets
Why Are Cryptocurrency Markets Crashing? Will Bitcoin (BTC) Price Return to $60,000?
Cryptocurrency markets are facing a strong bearish trend, causing the global market capitalization to drop by nearly 4%. In addition, trading volumes have also declined sharply, indicating a decline in trading activity. One of the main reasons could have been the Mt. Gox distribution, with an influx of over 50,000 BTC into circulation. However, creditors initially seemed to hold the token, but the increasing selling volume indicates mixed sentiments.
Now that the refund phase has just started, will the BTC price reach $60,000 by the end?
As Bitcoin price falls, ETFs have seen positive inflows, with $485 million recorded as the highest level. Therefore, it is believed that the possibility of a bullish rally continues to loom over the crypto, regardless of the mounting bearish pressure. The short-term BTC price seems to have completed a retracement and could therefore be preparing for a small rebound.
THE BTC Price Bitcoin price was trading in a rising wedge; hence, a nominal pullback was expected. With the ongoing bearish action, sellers are expected to get crushed, which could lead to an extended downtrend for some time. The levels at $63,550 can be considered significant as the trend reversed after reaching this area. Hence, the bulls jumped when the levels fell below $63,500 and as the RSI triggered a bullish divergence, a bounce seems imminent.
Conversely, the possibility of a fresh rise lower is on the horizon as the RSI remains above the lower threshold. This could lead the price to break through the intermediate support and in such a case, the 100-day and 200-day moving averages at $62,743 and $61,743 could act as strong support. However, if the bulls fail to hold these support levels, Bitcoin price is likely to drop below $60,000 to test the monthly lows at around $59,200 in an extreme bearish case.
Therefore, the next few days could be quite important for the Bitcoin (BTC) price as they could decide the token’s next course of action.