As the Ex-founder of Binance, Chanpeng Zhao was sentenced to four months in prison; BTC and other altcoins price experienced a massive drop. Amidst this legal storm, the crypto world witnesses a $322 million-long liquidation, per Coinglass.
The legalities increase the FUD in the crypto world and lead to the lowest closing price in Bitcoin in the last 60 days. With bears gaining control, the BTC price drops under $60,000 for a brief moment.
The bears undermining critical support nullify the bullish pattern in the daily chart. With this sell-off phase, is the Bitcoin price prediction of $100,000 nullified? Let’s have a closer look at the BTC price chart to analyze the upcoming trend.
With $95 million in long liquidations, the Bitcoin price fails to find a fourth bounce back from the $60,000 support zone. The 5% drop last night created a massive bearish candle cracking under the support zone.
With the bearish candle, the bullish flag fails to hold its ground and signals a potential downside reversal. Further, with a spike in FUD sentiments, the Bitcoin price might drop even lower.
Technical indicators like the MACD and RSI project a gradual rise in bearish momentum. The negatively trending MACD and signal lines as the daily RSI drops closer to the oversold zone signal a potential drop.
Currently, the BTC price trades at $60,126, and an intraday drop of 0.61% projects a minor slowdown in the sell-off. Further, the bearish sentiments could exhaust soon, considering the four-month prison sentence is much lighter than anticipated.
Bitcoin dominance reflects the percentage of Bitcoin’s share in the overall crypto market over that of altcoins. With the recent sell-off, BTC’s dominance over altcoins is expected to drop in coming weeks.
As per the logarithmic monthly chart, Bitcoin’s rising dominance approaches a resistance trendline. Closer to a pivotal stage, the sell-off increases the likelihood of a drop in Bitcoin’s price and dominance. Hence, the higher price rejection in this month’s dominance candle warns of a potential reversal.
Despite the sentiments fueled high momentum downfall, Bitcoin avoids a closing price under $60,000. With a lower price rejection, the demand at this psychological zone stands against the sell-off.
With the failed bullish flag pattern, the chances of a drop below $60,000 are on the higher side. In such a case, the prices could drop to the $55,000 or $52,000 support level.
Optimistically, a reversal rally could hit the $68,823 mark if the market overcomes the short-term FUD.
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