Despite favorable US CPI data, Bitcoin crashed nearly 4% on Thursday. This sudden drop, however, is almost undone as BTC shot up 3.68% in the past 12 hours. However, many traders suggest that the short-term volatility could knock Bitcoin price much lower, potentially below $60,000.

Technical Analysis Suggests Bitcoin Price to Break Below $60,000

A simple look at Bitcoin’s daily chart clarifies that Bitcoin price is still in a downtrend with lower highs and lower lows. The recent price action that created a higher high has increased the odds of an uptrend, but not by much.

To confirm this uptrend, BTC needs to hold $60,000 and overcome the $65,000 to $66,000 hurdles. Although there are no signs that suggest that Bitcoin could do this, if successful, investors expect a revisit of the $70,000 and higher levels. 

BTC Price Daily Chart

Traders Forecast BTC to Revisit $53,000

Adrian Zduńczyk, a Chartered Market Technician, posted to his 673,000 followers on X that $53,000 “is programmed” for Bitcoin next.

Ki Young Ju, founder and CEO of Crypto Quant, noted a similar view as Zduńczyk, suggesting $53K is a key support level.

According to CryptoQuant CEO, “Coinbase premium showed large differences at $53K and $72K, with whales buying at $72K and selling at $53K. Meanwhile, whales on global exchanges blocked an ATH breakout and defended $53K.”

He adds that the “near-zero premium may act as support/resistance.”

BTC Price Forecasts $53,000 Retest Likely If This Happens

The four-hour BTC chart shows how the $60,000 psychological level is important in determining short-term directional bias. If this key barrier holds, Bitcoin price could rally higher, but a breakdown could see it revisit the $53,000 support floor.

As mentioned in a previous CoinGape article, a retest of the $63,987 to $65,044 resistance level resulted in Bitcoin to crash 9% toward $60,000, a critical support floor. If BTC price flips the $61,837 resistance into a support, it will continue its ascent. However, a rejection is more likely considering how the four-hour Relative Strength Index (RSI) hovers below the 50 mean level, suggesting that the bearish momentum is in control. 

Additionally, the daily RSI has recently flipped the aforementioned mean level, which hints that the daily outlook needs to cool off before the bulls can make a comeback. 

If Bitcoin price follows what technicals are presenting, BTC is unlikely to hold $60,000. In such a case, the next key support zone extends from $57,201 to $57,970. This zone is a short-term foothold and is unlikely to hold unless sidelined buyers step in. If there is no spike in buying pressure, BTC could revisit $53,191.

Bitcoin 4-hour chart

On the other hand, if BTC holds $60,000 support, Bitcoin price prediction suggests a $65,000 to $66,000 revisit is possible. 

The post Will Bitcoin Price Hold $60,000? Traders predict Possible Drop to $53,000 appeared first on CoinGape.

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Filed under: News - @ October 11, 2024 11:26 am