The reason BTC fell to $60,000 today

Bitcoin price is currently trending down as a result of the possible war in the Middle East. A key level is missed, which could lead to another short-term decline.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

In the daily time frame, BTC price dropped below the key $64,000 mark and the 200-day moving average, which is around the same price mark. Currently, the $60,000 support level remains intact as investors are hopeful that this drop will be a temporary setback.

However, with the RSI also showing values ​​slightly below 50%, momentum is shifting to the downside and a move lower towards $56,000 remains a possibility.

Source: TradingView The 4-hour chart

The 4-hour chart shows a clear bearish change in market structure in terms of classic price action. The market has decisively broken a major downtrend line. However, the price bounced back from the $60,000 level as the RSI has also shown an oversold status in momentum.

Meanwhile, a full bounce is still less likely as the market structure suggests a deeper correction towards the $57,000 level is more likely. This scenario, of course, would fail if the price somehow breaks back above the $64,000 level soon.

Source: TradingView On-Chain Analysis

By Edris Derakhshi (TradingRage)

Bitcoin open interest

Although the price of Bitcoin has been falling over the past few days, future metrics of market sentiment are still overheated.

This chart presents BTC open interest, showing the number of open perpetual futures positions, both bullish and bearish.

As the recent decline suggests, the minimal drop in open interest indicates that a long liquidation cascade has yet to occur. A capitulation event would be highly likely in the event of a further price drop, which could lead to a quick market crash and push the price further down towards the $50,000 area.

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