Is $60,000 the Bottom for the Bitcoin Price Crash? The Technicals Do Not Say So!

Bloodbath hits Satoshi’s street as the BTC price marks fresh monthly lows below $61,000. The markets have turned bearish as the selling pressure mounts over the token, which has intensified with the rounds of Mt. Gox selling Bitcoin. Moreover, the miners have also liquidated nearly 30,000 BTC since the beginning of the month, due to which 3000 BTC longs were just liquidated on Bybit in less than a minute, causing bloodshed across the markets. 

Presently, the BTC price is assumed to have reached some crucial levels, which are considered to be a good time to accumulate. However, in reality, the token appears to be preparing for a huge move towards the south and may reach levels not seen since February 2024. However, the rally has formed bottoms below $61,000 and hence another bearish pullback may cause the token to plunge by another 15% to 20% soon. 

A popular analyst, Justin Bennett, believes that this could be a local bottom but not the low for the ongoing bearish rally

From a wider perspective, the BTC price has held the multi-year trend line as support since October 2023, which was broken recently. Since then, the price has started its trade within a descending channel and hence, now that the price has reached the lower support, a rebound is expected, which could revive a strong upswing towards the resistance close to $66,000. The analyst says a rise to $67,000 may also be possible but a major drawback may follow, slashing the levels below $55,00, probably close to $53,000 or $52,000 as well. 

The main reason behind the false breakout is the price trading within a falling wedge in the short term. As a result, a minor breakout seems imminent but the larger price chart displays a bull trap laid down as the price is primed to lose the $55,000 support. 

“One way to play a BTC local bottom is to wait for a reclaim of this falling wedge. 

A sustained break above $62,500 should do it,”