What’s Next For Bitcoin Price After A Decisive Breakdown From $60k?

In the last 48 hours, the Bitcoin price has witnessed intense selling pressure evidenced by the two long red candles in the daily chart. From $64714, the BTC price plunged 12.7% to currently trade at $56921, which the market cap fell to $1.28 Trillion. This downswing could be attributed to the negative outflow in BTC ETFs and uncertainty around the Federal Reserve’s interest rate decision later in the day. Will this correction trend extend below $50000?

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Is Bitcoin’s Buy-the-Dip Opportunity Still Valid?

Over the past two months, the Bitcoin price sustained its position above the psychological level of $60000— a support floor accompanied by several technical marks such as 100-day EMA, 23.6% FIB level, and a lower trendline of the triangle pattern.

However, with a 6.1% intraday loss, the BTC price gave a decisive breakout below the aforementioned support allowing sellers to strengthen their position over this asset. If the selling momentum persists, the correction trend could extend another 11% before hitting the next significant support of $50600 coinciding with 38.2% FIB.

In theory, a retracement to the 50% Fibonacci level, which for BTC stands at $44,838, would still be considered a healthy correction, potentially setting the stage for a resurgence in bullish momentum. Thus, the Buy the dip opportunity is still intact for Bitcoin.

Also Read: Bitcoin Correction: Analyst Explains How This BTC Retreat Is Different

Is Bitcoin Setting Up for a Bullish Breakout? Analyzing Past Halving Cycles

In a recent tweet by renowned trading analyst Alicharts, a detailed examination of Bitcoin’s behavior around its halving events highlights intriguing patterns of market consolidation before triggering a fresh bull run. Specifically, the analysis points out that following the last two halving events, Bitcoin entered prolonged periods of price consolidation — 189 days in 2016 and 87 days in 2020 — before the market witnessed a resumption of bullish momentum.

Around the last two #halving events, #Bitcoin consolidated for an extended period — 189 days in 2016 and 87 days in 2020 — before the bull run resumed.

So far, $BTC has consolidated for 60 days! pic.twitter.com/qosvd2z4JN

— Ali (@ali_charts) April 30, 2024

Currently, Bitcoin has been consolidating for 60 days, showing a similar pattern to past halving events. If the pattern holds true, the market participants can start expecting a renewed recovery trend a month from now.

Technical Indicator 

• Exponential Moving Average: The first bearish crossover between 20 and 50 daily EMAs after nearly seven months hints at a possibility for extended correction. 
• Relative Strength Index: The daily RSI slope on the verge of entering an oversold region could trigger a minor bullish pullback to replenish selling momentum.