$50,000 imminent after another 3% daily crash for BTC?

Bitcoin has experienced a bearish pullback after a significant rejection of the 100-day and 200-day moving averages. This highlights the prevailing dominance of the sellers, who seem intent on driving the price down.

Technical Analysis

By Shayan

The daily chart

A look at Bitcoin’s daily chart shows that after a surge towards the 100- and 200-day moving averages around the $64,000 mark, the price faced intensified selling pressure and was notably rejected.

This led to a retracement of these broken moving averages, signaling the start of a bearish decline. Price action indicates that the sellers are firmly in control, with the 100-day MA crossing below the 200-day MA to form a “death cross”, further reinforcing the bearish outlook.

Currently, Bitcoin has entered a key support zone defined by Fibonacci retracement levels from 0.5 to 0.618. This zone could provide temporary relief from the downtrend, which could lead to a period of sideways consolidation.

Source: TradingView The 4-hour chart

On the 4-hour chart, Bitcoin price has experienced a clear bearish rejection at the $64,000 resistance level, leading to a steady decline.

The failure to make new higher highs has turned the market trend decisively down, with lower highs and lows indicating intense selling activity. Bitcoin is now in a critical support zone defined by the 0.5 and 0.618 Fibonacci retracement levels.

If sellers push the price below this range, the next target is the key support level of $50,000, where significant buying pressure may re-emerge. Conversely, if Bitcoin finds support at this level, a bullish bounce towards the $60,000 psychological resistance could materialize.

Source: TradingView chain analysis

By Shayan

Examining futures market metrics can provide valuable insight into sentiment when evaluating Bitcoin price movements. A key indicator is Taker’s bid/ask ratio, which measures whether buyers or sellers are more aggressive in executing their orders.

The chart shows a significant decline in the ratio after Bitcoin’s rejection from the $64,000 level. This decline indicates an increase in sell orders in the market, reflecting a broader spread sentiment among traders.

This behavior underscores growing bearish expectations as traders position themselves for a potential breakout and further price declines, potentially towards the $50,000 support level. Increased sell-side aggression indicates a short-term continuation of the bearish trend.

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