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!
