With a momentary drop under $59k, Bitcoin formed a 24-hour low at $58,867. However, the quick reversal drove the BTC price back above $60k, resulting in a lower price rejection.
Currently, the BTC price shows a symmetrical triangle in the 12-hour chart, holding the fate of the crypto market. Further, a bullish attempt at reversal at the $60k level lights a hope of a comeback.
Will BTC witness a breakout rally as the S&P 500 hits a new all-time high? Read our BTC price analysis to learn more.
Bitcoin Price Analysis
In the 12-hour chart, the BTC price action reveals a triangular pattern formation. Bitcoin hesitates to continue a bear cycle within the pattern as it takes upwards near the $60,459 level.
With the possibility of a double-bottom reversal, the BTC price is trading at $60,115, struggling to sustain dominance above the psychological mark. Based on the Fibonacci levels, the BTC prices near the 50% level act as the baseline of the double-bottom pattern.
Meanwhile, the daily RSI line reveals a minor divergence, supporting the double-bottom reversal thesis. In case of a reversal rally, the BTC price is expected to surpass the 61.80% Fibonacci level at $62,611 to challenge the overhead trendline.
In case of a bullish breakout, the $69,579 is the next potential target. Meanwhile, a bearish continuation will test the $58,307 and lower support trendline.
Concerned about BTC’s future? Read our Bitcoin Price Prediction for potential price targets!
Transactions Shake Amid BTC Price Fluctuations.
Amid the increasing volatility, the average transaction size over Bitcoin and the average balance have witnessed massive fluctuations, ranging from the 7-day high of $92,686 to a low of $34,518.
The 7-day average transaction size stands at $76,547. Meanwhile, the average balance over the past seven days is $22,471.
As the fluctuations in the transaction size and the average balance grow, they reflect the growing volatility in Bitcoin prices and overall network usage.
S&P 500 At ATH Warns Bitcoin Correction
In a recent X post, Martinez Ali, a crypto analyst, highlighted a pattern between the Bitcoin price and the S&P 500. Currently, the S&P 500 is trading near its all-time high levels. Meanwhile, Bitcoin has seen a massive drop.
The history between the S&P 500 and Bitcoin reveals this as a general pattern. In September 2018, when the S&P 500 peaked, Bitcoin had dropped by 68% in 2017-18. The pattern repeated in February 2020, when Bitcoin dropped 54% while the S&P 500 was trading at its all-time high. It repeated again in December 2021, with Bitcoin dropping 40%. Currently, BTC price is trading at a 33% low from its all-time high, with the S&P 500 continuing to make a new all-time high.
Conclusion
Amid the chances of a double-bottom reversal, the $60k support of Bitcoin witnesses massive supply tension. With a momentary drop under $59k levels last night, the BTC price is losing critical support levels. Hence, price action traders can find the breakout entry opportunity a safer option than speculative moves.
