The preceding week she proved arduous for crypto market stakeholders. Bitcoin’s valuation plummeted beneath the $58,000 threshold, forfeiting crucial support from the 200-day exponential moving average.
Despite an attempted resurgence on Saturday, July 6, Bitcoin’s price once more descended below the $56,500 level on Sunday, fracturing the market’s structure and heralding a bearish prognosis.
Ether (ETH), XRP, and other major cryptocurrencies also tumbled below essential support levels, foreboding a potential downtrend for the cryptocurrency market in the forthcoming days.
As of this writing, the aggregate crypto market capitalization stood at $2.05 trillion, reflecting a 3.3% decline within the past 24 hours. Concurrently, total trading volume surged by 21% to $67 billion, underscoring the magnitude of sell-side pressure.
Bitcoin’s valuation dwindled by 3.62% over the last week, while Ether experienced a 3.93% decline in the same timeframe.
This downturn has precipitated substantial liquidations throughout the crypto market. As of the latest update, over $79.22 million in long positions have been liquidated across the cryptocurrency landscape, with more than $50 million in long Bitcoin positions being liquidated in the last 24 hours alone.
Elevated long liquidations indicate traders lack sufficient capital to maintain their long positions, reflecting waning confidence in an imminent recovery.
READ MORE : Bitcoin Navigates Tumultuous Seas as It Reaches Four-Month Abyss Amid Intensifying Liquidation Pressures
Consequently, should the sell-side pressure persist, Bitcoin may continue its descent, potentially dragging the broader crypto market down with it.
Bitcoin Price Analysis
Bitcoin’s price faced resistance at the 200-day EMA threshold of $58,176 on Saturday, resulting in a 4% drop the following day. By the close of Sunday, it had dipped below the May 1 swing low of $56,500, trading around $55,679 on July 8.
The Relative Strength Index (RSI) was at 30, positioned in the oversold territory, suggesting bearish dominance. These sellers could drive the price beneath Friday’s swing low of $53,412. Failing to hold this support would indicate buyers’ inability to defend this level.
The price may further decline, initially targeting the psychological level of $50,000 and subsequently the support level of $41,927. Such a move would represent a 25% drawdown from the current price.
On the upside, if BTC closes above the 200-day EMA and forms a higher high on the daily chart, it could signal that bullish sentiment remains strong. This development might propel the leading cryptocurrency to ascend beyond the lower boundary of the descending channel at $59,198 and reach the middle boundary at $61,100.
Beyond that level, BTC bulls could push the price to challenge the resistance at $63,068, which is reinforced by the upper boundary of the channel, the 100-day EMA, and the 500-day EMA.
Leave a Reply