Crypto Market Divided: Bitcoin Correction or Bullish Reversal on Horizon?

Bitcoin (BTC) has found a strong support level above its 50-day moving average (MA), even as the cryptocurrency market faces ongoing corrections. The leading cryptocurrency is gradually forming a midterm reversal pattern, marked by a potential weekly double top and a bearish divergence on the Relative Strength Index (RSI).

Here’s what you need to know.

Risk of a Drop to $60K

Experts warn that if buyers don’t maintain the current range, Bitcoin’s price could drop to around $60,000. This caution comes amidst mixed market reactions, with miners increasing profit-taking and US spot BTC ETFs seeing net cash outflows. Despite these challenges, institutional demand for Bitcoin remains high, as indicated by the low balances on exchanges, even more than two months after the fourth halving.

Although the recent Fed monetary policies have signaled midterm low liquidity levels, experts have noted that the demand for risk-averse products has spiked.

“There’s a new wave of dollar strength and demand for equities. Risk asset demand is gradually diminishing, forming a sequence of declining intraday highs for bitcoin,”

Alex Kuptsikevich, FxPro senior market analyst

Bearish Signals and Market Outlook

Rachel Lin, CEO and co-founder of SynFutures, has noticed bearish signals in both Bitcoin and Ethereum, which could mean further declines for the crypto market.

However, popular crypto analyst Michaël van de Poppe predicts a bullish turn as the dollar weakens against global currencies. He believes Bitcoin will find strong support above $60,000 if sellers push the price below $66,000.

Looking forward, Poppe expects Ethereum to outperform Bitcoin in the next bullish phase. He notes that the ETH/BTC pair indicates an inevitable reversal, potentially sparking the much-anticipated altseason.