Bitcoin fell below 60 thousand dollars on Thursday, increasing the selling pressure in the cryptocurrency market. Losses in megacap technology stocks weakened risk appetite, putting additional pressure on the already fragile market. BTC, which dropped to approximately 58 thousand dollars in intraday transactions, also erased its gains in June.
54 thousand dollars stood out in the technical view
In the analysis, it is stated that Bitcoin’s fall below 60 thousand dollars activates more than one bearish signal at the same time. The round top formation on the four-hour chart shows that purchasing power is gradually weakening and the upward trend is turning into a downward structure. In this structure, the decline target can be technically calculated when the price falls below the base support.
Bitcoin’s fall below $60,000 completely erased the rise recorded throughout June and confirmed multiple bearish formations.
According to that measurement, the downside target is just below $54,000. This level indicates an additional retracement of approximately 8.9% compared to current prices. The fact that the bear flag break seen on the daily chart also points to the same region increases the weight of the technical scenario.
Mini dictionary: MVRV is an indicator that compares Bitcoin’s market value to the average cost at which it was last moved on-chain. This metric is used to track whether the price is historically approaching extreme profit or extreme loss zones.
| Indicator | Level | The region it points to |
|---|---|---|
| Round top formation | Under $54 thousand | Downside technical target |
| bear flag breakdown | 54 thousand dollar region | Second bearish signal |
| MVRV 1.0 band | $53,390 | Important support zone |
On-chain data also pointed to the same region
The on-chain price bands included in the news also revealed a similar picture. MVRV price bands tracked by Glassnode compare Bitcoin’s market price to the average price it last moved on-chain. Glassnode is known as a research company that offers on-chain data and market analytics for digital assets.
On Wednesday, Bitcoin was trading at around $60,997, while the 1.0 MVRV band, shown in green, was around $53,390. The fact that this level largely coincides with the 54 thousand dollar area, which stands out in technical analysis, made the area in question more important.
The fact that the MVRV 1.0 band points to the same region with the downward formations formed on the four-hour and daily charts has made the 54 thousand dollar area a critical support position in the short term.
The possibility of a deeper retreat was also monitored
However, if sales accelerate, lower levels may also remain on the agenda. In the analysis, it was stated that the 0.8 MVRV band shown in blue was found at approximately $42,700. It is stated that in past market cycles, the main decline bottoms occurred in regions close to this band, and the selling pressure intensified in periods when unrealized losses increased significantly.
For this reason, while the $ 54,000 area is followed as the first important support in the short term, in the event of a deeper dissolution, the $ 42,700 band is followed as another prominent area in a wider time frame.
