Bitcoin Price Falls to 56000 After Weekend Recovery

Coin World Report:
Bitcoin fell 4% on Sunday, as bearish pressure suppressed the rebound from Saturday, sending the altcoin market back into bear territory. Increased supply led to a decline in the early Asian session this week, weakening the possibility of a recovery seen earlier this week.


The trading price of Bitcoin was $55,269, with a 1.30% intraday decline, dropping to a low of $54,296. Under the bearish sentiment, altcoins began to experience long liquidations this week, with top cryptocurrencies falling 5% or more.
Ethereum, Solana, and Toncoin declined by 5.25%, 7.23%, and 5.45% respectively, while meme coins suffered heavy losses. DOGE, SHIB, and PEPE fell by 8.08%, 7.64%, and 12.84% respectively.
As Monday’s depression hit the cryptocurrency market hard, expectations for a larger crash this week are increasing. Let’s take a detailed price analysis of the top cryptocurrencies to have a clearer understanding of the market.
You can also check out our Bitcoin price prediction to determine the likelihood of Bitcoin reaching the $100,000 milestone this year.
Bitcoin Price Performance
Following the rebound on Saturday, Bitcoin continued to decline. BTC broke below the $56,000 mark, trading at $55,269, and falling nearly 5% in the past 24 hours.


Trading Perspective
The bearish impact intensified on the daily chart, with BTC price breaking below the descending trendline. Sunday’s 4% decline formed a bearish engulfing candle and reset the bearish trend.


The total amount of long liquidations in the market reached $111 million on Sunday, and this trend continued into early Monday morning, with long liquidations amounting to $75 million. The price trend indicates a continuation of the downtrend, and long liquidations provide support for bearish traders.
Bitcoin Hashrate Drops to Critical Level
The hashrate drop in the Bitcoin network is an indicator of declining mining activity. According to Cryptoquant’s data, this indicator has dropped to the level seen since December 2022.


Historically, this hashrate drop coincides with significant price fluctuations. The drop in December 2022 occurred before an apparent bull market reversal, suggesting that the current situation may indicate similar price movements.
As the Bitcoin price plummeted, the significant drop in hashrate may indicate that the market has bottomed out or is about to enter a bullish phase. However, with the Bitcoin price breaking below the $56,000 mark, this contradicts the current price trend.
Although the next support level is at $52,000, it could serve as the next rebound cushion towards the $100,000 target.
Where is Bitcoin heading this week?
With the ongoing panic in the cryptocurrency market, the bearish trend may continue this week. With Bitcoin breaking below $56,000, the next reasonable support level is at the $52,000 mark. Furthermore, the downtrend increases the possibility of a death cross between the 50-day and 200-day EMAs.
Given the further widening of the decline, there may be significant sell-offs and larger-scale liquidations of altcoins this week.