Bitcoin Crash: BTC Price Hits $60k, Will It Crash More?
Sohrab Khawas3 Oct 20242 min read
Amid the rising tensions between Israel, Iran, and Lebanon, crypto and global markets are bleeding heavily. The downfall has wiped out 10% or $230M of the total crypto market cap in the last five days.
Leading to massive liquidations, Bitcoin traders lost more than $200M in long positions. As the downfall gains momentum, Bitcoin is back near $60K. Will this lead to a crash under $60K? Let’s find out now in our Bitcoin price analysis.
Bitcoin Price Performance
With a bullish failure to sustain dominance above the $66,000 level, the BTC price takes a bearish turn. The market cap of Bitcoin has dropped by almost 8% over the last five days.
Currently, the BTC price is trading at $60,471 after two bearish engulfing candles followed by a higher price rejection candle. This marks a second consecutive shooting star candle in the making.
In the 1-hour chart, the bearish run forms a falling wedge pattern with a solid resistance trend line. However, on the bullish side, the possibility of a double bottom pattern arises at a critical support of $60,177.
Will BTC Price Sustain Above $60K?
The bullish divergence in the 1-hour RSI line increases the possibility of a double-bottom reversal. The neckline for the double bottom stands at $61,544, or the 23.60% Fibonacci level.
The Fibonacci retracement is placed over the recent price swing between $66,000 and $60,000. A bullish breakout of the double bottom reversal will likely challenge the critical support trend resistance at 50% Fibonacci level at $63,000.
Furthermore, a complete double-bottom reversal will lead to a falling wedge pattern breakout, increasing the chances of a price surge to the $66,000 top.
Conversely, crucial supports are present at $60k, $57k, and $55k. Curious about Bitcoin’s bull run in October? Check out Coinpedia’s Bitcoin (BTC) Price Prediction for an overview of long-term targets!
