Bitcoin price analysis: The largest digital asset is on the verge of breaking a crucial support level, triggering further losses at May’s outset. Bitcoin’s market doldrums started just before halving but continued after the event, denying bulls of another push above the $70,000 mark.
As Bitcoin descended from its post-halving peak above $67,000, the entire crypto market slashed the gains accrued in March and part of April with some altcoins almost erasing all the progress made in Q1.
Bitcoin price hovered at $61,210 during US business hours on Tuesdays, down 1.8% in 24 hours, 7.7% in seven days, and 13% in a month, according to data from CoinGape and CoinGecko.
Bitcoin is the most dominant digital asset, at 51% of the entire crypto market value. It commands over $1.2 trillion in market cap and a 24-hour trading volume of $29 billion.
Bitcoin Price Analysis: Will Bitcoin Drop Below $60,000 This Week?
Bitcoin price appears to be balancing at the high of a high cliff. With the protection $62,000 protection that bulls depended on since last week obliterated, it is a matter of time before BTC retests the next key level at $60,000.
Key technical indicators highlighted a tweaking technical structure, increasing the probability of declines to and possibly below $60,000. A sell signal from the Moving Average Convergence Divergence (MACD) indicator encourages traders to focus on shorting BTC in the short term.
Should the 20-day Exponential Moving Average (EMA) cross below the 50-day EMA forming a death cross pattern, the path of least resistance might remain downwards this week.
The Relative Strength Index (RSI) has shown a consistent downtrend since the peak in March when Bitcoin topped historical highs of $73,837. At 38 and still sliding, the RSI reinforces the bearish grip.
Losses may overshoot support at $60,000 and reach out for a retest of lower levels including $56,000 and $52,000, respectively. Trading these levels would worry retail investors but some may take the opportunity to buy BTC at a discount.
Such a drop may also represent the bottoming of Bitcoin price before the trend trend eases into the bull run.
Bitcoin ETF’s Slowdown Weighs Prices Down
The uptake of ETFs after their approval in January was the biggest force behind Bitcoin price rally to new all-time highs. However, the bullish trend waned weeks ahead of the halving in April, leaving Bitcoin.
As discussed on Monday, the total daily net outflow had increased to $81 million, led by Grayscale’s GBTC’s withdrawals. The outflow volume had slowed to $51 million on Tuesday, bringing the cumulatively net inflow to $11.94 billion according to data by SoSoValue.
The impact of the ETF on BTC price cannot be overemphasized seeing that it improves sentiment for digital assets in the market. A turnaround in the volume in the green is expected to pamper the trend and ignite new buy orders from investors and traders currently sitting on the sidelines.
Moreover, Bitcoin ETFs are expected to start trading in Hong Kong, a financial hub in Asia. Coupled with the post-halving impact on the supply of Bitcoin, price may start to gain momentum in May, reaching record highs.
The post Bitcoin Price Analysis: ETF Slowdown To Blame For BTC’s Plunge Below $62,000? appeared first on CoinGape.
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