With a 1.68% drop in the total market cap of the crypto world, Bitcoin continues to decline with a rise in supply pressure. Despite 90% of Bitcoin HODLers in profit, the downtrend warns of a steady decrease in this percentage.
Further, almost $500 Million worth of long liquidation in the crypto market reveals a strong bearish side. However, 70% of HODLers have been in the game for more than a year, revealing underlying confidence in investors.
This week, with the opening bells in the Asian market, Bitcoin marks a drop of 1.10% and trades slightly above the $65,000 level. BTC’s price sustains this level with a lower price rejection from the $64,050 mark, uncovering demand at lower levels.
However, in the last ten days, Bitcoin has struggled to showcase any significant bullish candle and is down by almost 5%. Will the ongoing struggle for a comeback fail to sustain above $65,000 this week? How low might the BTC price drop in this crypto market crash? Let’s take a look at the price analysis and find the Bitcoin price prediction in this market crash.
Bitcoin Price Performance
Following the downfall within the flag pattern, the BTC price breaks below the support trendline and the 50D EMA. With this downfall, the bullish players are losing hope as the inverted head and shoulder pattern fails out.
Further, with the conclusion of short-term recovery, the bearish trend is down by 7.62% in the last twelve days. As the lower high formation continues with a boost in trading volume bolstering the bear cycle, the BTC price is under extreme selling pressure.
Currently, Bitcoin trades at $65,777 with a long tail formation in the daily candle, revealing a bullish comeback in the shorter timeframes.
Derivatives Detect Reversal Chances?
Despite a positive funding rate of 0.00114035, the Open interest has been on a declining slope over the last few days. Currently, the OI stands at $17.616 Billion, down by 2.63% in 24 hours and 4.88% in the last week.
The rising funding rates signal optimism in long traders, but the declining OI reveals profit booking and/or leveraged long position liquidations. This reveals a paradox of cautious optimism in the market.
If the cautious traders slowly start to gain traction, the Bitcoin price could take a reversal from the $65,000 level.
How Low Will Bitcoin Go?
As the downfall in the crypto market continues, the Bitcoin price struggling at the $65,000 level warns of further correction. However, with the lower price rejection with dovish derivative data, the underlying confidence in the bullish traders is rising.
Hence, a bullish intraday sustenance above the $65,000 level could result in a bullish reversal in Bitcoin price. Optimistically, the bull run starting from this support could challenge the $70,000 by the end of this week, undermining the recent correction.
On the downside, a correction under $65,000 will prove fatal for Bitcoin and altcoins, fueling the bearish run. In such a case, the next demand dominant support level stands at $60,070, a 7% additional drop.