Over the weekend, the cryptocurrency market went through some serious ups and downs, resulting in Bitcoin’s price finally dropping below its previous all-time high of $69,000. This has got many wondering if we’re in for a bigger downturn.
Price Rollercoaster: Bitcoin took a 6% nosedive on Saturday, only to bounce back with a 4.7% rally on Sunday. Ever since Bitcoin smashed through its previous record of $69,000, the price has been all over the place. We’ve seen a 6% drop last Tuesday, a 5.6% gain the Monday before that, and plenty of ups and downs since.
The Current Situation: Things are looking a bit shaky for Bitcoin right now. Failing to close above $69,000 for the week might signal that last Thursday’s high of $73,800 could have been the peak, possibly leading to a bigger correction.
Uptrend Broken: As shown in the chart, the upward trend from $51,000 has been broken, and it seems like Bitcoin is struggling around the $69,000 mark. This could be an opportunity for the bears to take over.
Possible Bitcoin Rejection: Zooming out to the weekly timeframe, the picture becomes clearer. If the rejection from $69,000 holds up, major support levels are at $65,000, $59,000, and $51,000. A drop back to $51,000 would be a healthy 30% correction, enticing for those wanting to enter the market.
Unusual Supply Situation: Despite all this, the demand for Spot Bitcoin ETFs is unlikely to decrease anytime soon. The market’s path in the coming months is uncertain, with Bitcoin’s supply decreasing due to halving. This unique supply situation calls for caution when trading.
