Why is Crypto Markets Plunging? Is Bitcoin (BTC) Price Heading Back to $60,000?

The crypto markets face extreme bearish heat, causing a nearly 4% drop in global market capitalization. Besides, the trading volume has also slashed heavily, indicating a drop in trading activity. One of the major reasons could have been the Mt. Gox distribution, with an influx of more than 50,000 BTCs in circulation. However, the creditors initially appeared to be holding the token, but the growing selling volume indicates diverse sentiments. 

Now that the repayment phase has just begun, will the BTC price reach $60,000 by the end?

While the price of Bitcoin is tumbling, the ETFs witnessed a positive inflow, with $485 million recorded as the highest. Hence, it is believed that the possibility of a bullish rebound continues to hover over crypto, regardless of the mounting bearish heat. The BTC price in the short term appears to have accomplished a retracement and hence could be preparing for a small bounce. 

The BTC price was trading within a rising wedge; hence, a nominal pullback was expected. With the ongoing bearish action, the sellers are expected to be squashed, which may lead to an extended descending trend for a while. The levels at $63,550 can be considered important as the trend has reversed after hitting this zone. Therefore, the bulls jumped in as the levels dropped below $63,500 and as RSI has triggered a bullish divergence, a rebound seems to be imminent. 

Conversely, the possibility of forming another lower high looms as the RSI remains above the lower threshold. This could cause the price to pierce through the interim support and in such a case, the 100-day & 200-day MA at $62,743 & $61,743 may act as strong support. However, if the bulls fail to hold these support levels, the Bitcoin price is expected to dump below $60,000 to test the monthly lows at around $59,200 in an extreme bearish case. 

Therefore, the next couple of days could be pretty important for the Bitcoin (BTC) price as it may decide the next plan of action for the token.