Bitcoin Breaks Key Support, $58,000 Next Target?

Bitcoin (BTC), the world’s largest cryptocurrency by market cap is poised for a significant price decline in the coming days. Due to the ongoing conflict between Iran and Israel, overall market sentiment has turned bearish, and BTC has breached its crucial support of $62,150 level. 

BTC Current Price Momentum 

BTC is currently trading near the $60,700 level and has experienced a price decline of over 4.1% in the past 24 hours. During the same period, its trading volume rose by 65%, indicating increased participation from traders and investors.

Bitcoin Technical Analysis and Upcoming Levels 

According to the expert technical analysis, BTC appears bearish and is now heading toward the next support of $58,000 level. Despite the outlook, BTC remains above the 200 Exponential Moving Average (EMA) on a daily time frame, indicating an uptrend. 

Despite the support at the $58,000 level, given the current market sentiment, there is also a strong possibility that BTC may decline further and reach the $54,000 level in the coming days.

On-Chain Metrics

In addition to the bearish technical analysis,  BTC’s on-chain metrics show a weak bullish sentiment among traders and investors. According to the on-chain analytics firm Coinglass, BTC’s Long/Short ratio currently stands at 1.02, indicating a mildly bullish market sentiment.

Additionally, its future open interest has declined by 5.6% in the past 24 hours and has been steadily falling, indicating that traders have either liquidated their positions or are hesitating to open new ones.

When the long/short ratio is above 1 and open interest is declining, it means that traders are bullish but may be hesitant to build new long positions.

Recently, a prominent crypto expert made a post on X (previously Twitter) that traders on Binance, the largest cryptocurrency exchange, are seizing the opportunity to buy the dip. According to the data, 61.36% of top traders hold BTC’s long positions, while 38.64% hold short positions.