Coin World Report:
Bitcoin’s price continues to decline as the market has lost several key support zones. While many investors are concerned about a stock market crash, this downturn could also potentially mark the beginning of a bear market.
Technical Analysis
via TradingRage
Daily Chart
The daily chart indicates that the price has lost support at $60,000 and has fallen below the 200-day moving average, situated around the $58,000 level.
The 200-day moving average is a critical indicator, having historically supported prices throughout previous bull markets. Its decline typically signals the end of a bull market. Currently, with prices hovering around $57,000, BTC has failed to produce daily candles close to this level.
Yesterday’s significant drop in candle shadows may indicate that the decline has halted, potentially leading to consolidation or even recovery in the short term.
Source: TradingView
4-Hour Chart
The 4-hour chart illustrates a clear bearish trend for Bitcoin over the past few weeks. Prices have consistently formed lower highs and lower lows, breaking through multiple support levels.
Presently, the price is retesting the $57,000 level from below. A successful reclaim of this level could spark hopes of a bullish rebound in the coming weeks, especially as the RSI recovers from oversold territory. However, a reversal cannot be expected as long as BTC’s trading price remains below the critical level of $60,000.
Source: TradingView
On-Chain Analysis
via TradingRage
Bitcoin Realized Hash Rate Withdrawal
While price analysis can only hint at short-term market behavior, more insights can be gleaned from on-chain analysis focusing on BTC network fundamentals.
This chart illustrates a decline in Bitcoin’s hash rate, which measures the network’s relative computing power. The hash rate’s drop has dipped below the bear market low of approximately $16,000, indicating widespread miner capitulation.
While miner exits from the market are generally unfavorable signs, this could potentially signal that the recent downtrend, akin to January 2023, might be nearing its end.
Thus, despite widespread concerns about the future, some staunch Bitcoin believers may be diligently accumulating. Only time will tell whether we have bottomed out or if the bear market is just beginning.
Source: CryptoQuant
