Bitcoin lost all the gains it made last Saturday. The leading cryptocurrency visited the critical $60,000 level on Wednesday. After a brief rise above $64,000 earlier today, it dropped to $59,900. Thus, BTC tested its weakest point since the beginning of March.
Current trading dynamics for Bitcoin
cryptokoin.comAs you follow from , the leading cryptocurrency Bitcoin lost serious altitude today. Thus, it gave back its gains at the beginning of the week. However, the most active Bitcoin trading pair (BTC-USDT) on Binance shows a large number of buy orders piled up below $60,000. Buy orders are more dominant than sell orders. This indicates strong market demand that could prevent further losses at these low levels.
However, Bitcoin is down over 15% from its recent peak. Additionally, altcoins also suffered losses ranging from 40%-50%. According to data from Glassnode, such declines reflect typical behavior in previous bull market corrections. But despite visible buy zones, large investors are hesitant to buy the dip.
BTC’s technical outlook indicates decline!
The Wyckoff method, a popular technical analysis tool, also indicates potential further declines. The latest analysis from Stockmoney Lizards via a tweet shows that Bitcoin is currently in the so-called “sign of weakness” phase of the Wyckoff Distribution Model. This is a phase characterized by a decrease in demand. It usually leads to a possible price drop.
From a technical perspective, BTC price saw rejection from the $70,000 resistance level. After this, it moved towards retesting the $60,000 support zone. According to the analyst, a break below this could possibly lead to a sharp decline towards the $55,000 level. Conversely, if Bitcoin can surpass $68,000 again, reaching new highs could be just around the corner. However, the Relative Strength Index (RSI) is currently below 50%. Therefore, the probability of a collapse is high. So, it’s likely to lead to potentially serious market consequences.
Bitcoin ETFs are bleeding!
This situation is exacerbated by external economic factors such as the Federal Reserve’s continued high interest rate policy and increased tensions due to the Iran-Israel conflict. Therefore, these developments push investors to stay away from risk. There has been an outflow of approximately $150 million in Bitcoin ETFs since April 12, when the Iran-Israel conflict began. This points to a broad-based flight away from riskier assets.
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