Bitcoin Price Prediction: Why BTC’s Crash To $50,000 Looms Before Bull Run?

Bitcoin Price

Bitcoin Price Prediction: Bitcoin price increased by 0.8% in the last 24 hours to trade around $61,725 at press time. This small recovery comes after a few days of downward movement from the asset. This happens against the backdrop of the German government actively offloading BTC confiscated from film piracies in the country.

Bitcoin Price Prediction: BTC May Tumble to $50,000 if This Support Level Breaks

Bitcoin price

Bitcoin price currently sits just above the $60,000 price target, which is a major support tested over five times since March 2024. The asset is trending below the 50-day but above the 200-day simple moving average, indicating some struggle between the bulls and the bears. 

The relative strength index (RSI 14) is just 3 points above 30 – the boundary of the oversold area. The RSI line is also trending below its moving average (MA), indicating further downside for Bitcoin price. 

Additionally, the BTC price action has been in a giant four-month consolidation zone with the upper boundary at $73,500 and the lower boundary at $60,000. If the bulls remain resilient, they may be able to push the price back up to the upper boundary, a journey that may encounter resistance around $65,000 and $72,000.

On the flip side,  a break below the latter may trigger panic in the market and the ensuing cascading sell-off may push the price to the $50,000–$52,000 support level.

FEAR AND GREED INDEX

The Bitcoin Fear & Greed Index dropped from 64 (Greed) last week to 46 today (Fear), indicating that market participants fear the events surrounding Bitcoin and the potential impact on the price.

BTC OPEN INTEREST

Data from Coinalyze further exacerbates the situation as the aggregated Bitcoin Open Interest across exchanges has been falling since June 9. This indicates that money is moving from Bitcoin, possibly into other altcoins or stablecoins as the market becomes more fearful.

BTC Price Hangs on The Balance As Germany Offloads the Asset to Exchanges

Spot Onchain, an AI on-chain insights firm, reports that Germany is offloading a huge chunk of Bitcoin on crypto exchanges. They seized this BTC from film piracy operators in the country.

On June 25, the German government moved an extra 900 BTC to crypto exchanges. 400 BTC was particularly sent to Coinbase and Kraken, bringing the total amount of BTC transferred by Germany to 3500. Germany has 46,359 BTC left which is approximately $2.8 billion at current prices.

Bottom Line

The price of BTC hangs by a whisker and negative news may result in a catastrophic sell-off. Market participants remain fearful, shifting to stablecoins where they anticipate the German government to sell off his massive BTC stash.

The post Bitcoin Price Prediction: Why BTC’s Crash To $50,000 Looms Before Bull Run? appeared first on CoinGape.


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