Bitcoin (BTC) is the world’s first and largest cryptocurrency, with a current market capitalization of over $1.2 trillion. Since its inception in 2009, Bitcoin has experienced significant growth and adoption, leading to its status as a valuable asset for investors.
However, the bearish momentum is increasing on Bitcoin’s price as it is struggling to break above resistance levels. Since reaching a new all-time high (ATH) in March 2024, Bitcoin has been charting lower highs and lower lows, indicating a downtrend.
As we found on CoinMarketCap, Bitcoin encountered resistance near $65,000, following a rebound from the $65,000 swing low. This resistance level aligns with the 0.5 Fibonacci retracement level, which spans the decline from the all-time high to the recently pinpointed swing low.
Reasons Why BTC Could Drop Below $60K
Initially, most popular crypto analysts believed that the Bitcoin pullback was a phase of accumulation that would eventually find significant support and lead to a recovery. However, the latest price movements of the crypto market indicates increasing bearish momentum for Bitcoin.
Specifically, the daily chart for Bitcoin shows that its price is following a consistent downtrend. If this trend persists, Bitcoin could fall below $60,000 for the 3rd time since reaching its all-time high in March 2024. This situation might further intensify the increasing sentiment of fear, leading to traders and investors selling off their Bitcoin holdings.
To occur, Bitcoin could drop below the latest swing low and move towards the next major support level near $51,000. However, on the other hand, Bitcoin could recapture the $65,000 resistance level and breaking this level could lead to a surge up to $70,000.
Our Final Thoughts
At the time of writing, Bitcoin is trading at around $62,785, showing 2.60% increase in price over the last 24 hours and around 2% decline over the last 7 days.
As per our long-term Bitcoin price prediction, BTC has the potential to reach a maximum price level of $89,319.62, with an average price of $80,893.24 by the end of 2024. On the other hand, the minimum price can fall down to $75,837.42 if the crypto market gets a bearish environment.
Furthermore, it is important to note that the crypto market is highly influenced by global events and news. Any major news or events, such as regulatory changes or adoption by institutions, could have a significant impact on Bitcoin’s price.
Also Read: Cryptocurrency Market Under Pressure, All Eyes on Upcoming April CPI Report
Disclaimer: The information in this article should not be considered anything as financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.
