Bitcoin Price Analysis: Will $BTC Correction Dip Below $60K Support?

Bitcoin Price Analysis: Bitcoin, the largest cryptocurrency market cap, witnessed notable downturn pressure this week, tumbling its value from $67000 to $62845 to register 6.3%. This selling pressure could be linked to the renewed geopolitical tension in the Middle East and the recent negative outflow in BTC ETFs. However, the falling price is heading to crucial support which has prevented a major correction in BTC since early March. Should you Enter this dip?

Also Read: Bitcoin ‘Sell’ Calls on the Rise Amid Trader FUD and Impatience, What’s Next?

Pennant Pattern Breakout May Lead the Next Recovery

For the past two months, the Bitcoin price has been trading sideways, resonating between two converging trendlines in the daily chart. These trendlines acting as narrowing resistance and support reveal the formation of a pennant pattern.

In theory, this technical pattern guides a temporary consolidation before the asset continues on a prevailing uptrend. The BTC price is currently trading at $63420, projecting an intraday loss of 0.51%.

If the supply pressure persists, the BTC price could tumble another 5.5% to hit the pattern’s lower trendline at $60000.

In a recent tweet, trader Alicharts pointed out a noticeable decline in Bitcoin whale activity since March 14. The provided chart illustrates a downward trend in large-value Bitcoin transactions, hinting at reduced influence from major holders. The trader suggests that a resurgence in whale transactions could be a key driver for boosting Bitcoin’s price.

Since March 14, there's been a noticeable dip in #Bitcoin whale activity. A surge in whale transactions could be the spark needed to boost $BTC prices! pic.twitter.com/hd6fwpp9Gp

— Ali (@ali_charts) April 27, 2024

If it holds, the Bitcoin price could rebound from the $60k support and continue on sideways action for a few days or weeks.

For buyers to regain control over this asset, a breakout above the upper trendline is needed which could lead the BTC price to $86400.

On a contrary note, if the coin price shows no reversal sign at the lower trendline after a few days of consolidation, the sellers could break the $60000 support, and trigger a notable correction. 

Also Read: XRP, ADA, BCH, LTC, STX Declared Zombie Among 20 Crypto By Forbes

Technical Indicator 

• Exponential Moving Average: The 100-day EMA slope wavering a $60000 support creates a high demand zone for traders.
• Directional Movement Index: A notable bearish crossoverDI+(blue) and DI-(orange) signals an active selling trend in the market.