Here’s the First Critical Support if Bitcoin Drops Below $60K

The price of Bitcoin has fallen rapidly over the past few days after failing to stay above the $70,000 level. The market is currently approaching the fundamental level.

Bitcoin Price Analysis: Technical Analysis

by TradingRage

Daily chart

As the daily time frame shows, Bitcoin price has been trending lower since the beginning of June after rejection from the $72,000 area. The price is approaching the pivotal support level of $60,000.

With the 200-day moving average around the $58,000 level, a break below $60,000 could trigger a retest of the moving average. In general, the medium-term fate of the market depends on the price reaction to these support elements.

Four-hour chart

On the 4-hour chart, the large falling wedge pattern has finally been broken to the downside, and the price is aggressively approaching the $60,000 support area. The Relative Strength Index has also declined rapidly and is showing values ​​below 30% at the moment.

Therefore, BTC is currently oversold on the 4-hour time frame, and a short-term recovery or consolidation at the $60,000 level is likely.

However, if the market declines, the $58,000 support area will be the next potential target.

On-chain analysis

by TradingRage

Short Term Bitcoin Holder SOPR

While the price of Bitcoin has fallen recently, many market participants are seeing their unrealized profits shrink. Meanwhile, some stockholders made their profits and exited the market before losing.

This chart shows the SOPR for short-term Bitcoin holders, showing the profit and loss ratio. Values ​​greater than one indicate that investors are selling at a profit, while values ​​less than one indicate losses.

STH SOPR is trending lower, and so is the BTC price. Short holders are on the verge of realizing losses, which could happen if the market drops below $60,000.

However, this also occurs at lows during a bull market. Therefore, if we consider that the bull market is not over yet, the bottom could be very close.