A drop to $56,000 is possible if BTC fails to break through this resistance

The price of Bitcoin has yet to recover from the recent drop, consolidating without a clear indication of its future direction. However, there are some signs that it could fall further if it fails to break above $60,000 soon.

Recall that the largest digital asset fell sharply on Tuesday, falling from more than $63,000 to $58,000, before recovering slightly to its current levels of $60,000.

Technical Analysis

By TradingRage

The daily chart

On the daily time frame, the asset has recently been rejected from the 200-day moving average and the $64,000 resistance level. It has also broken below $60,000 and appears to be on its way to the $56,000 support zone.

The RSI has also fallen below 50%, indicating that the momentum is gradually shifting to the downside once again. Given the current market structure, a decline towards the $56,000 level and even the $52,000 support zone is not unlikely.

The 4 hour chart

The 4-hour chart clearly shows the recent rejection of the $64,000 resistance level as the market has failed to demonstrate a strong rally higher. The price is currently retesting the $60,000 area to the downside, and if it fails to recover the level, a drop towards the $56,000 area is imminent.

However, if it breaks back above the $60,000 level, investors could be optimistic that it could run back to the $64,000 resistance zone and potentially higher towards $68,000 in the coming weeks.

Chain analysis

By TradingRage

Bitcoin Funding Fees

With Bitcoin’s market structure showing willingness for more bearish price action, many market participants have shifted their perspective towards the global crypto scene. This is also clearly evident in the funding rate metric.

This chart shows the BTC funding rates metric, which measures whether buyers or sellers are executing their futures positions more aggressively. Positive values ​​indicate bullish sentiment, while negative values ​​indicate bearish sentiment.

As the chart suggests, funding rates are showing negative values, indicating that futures market sentiment is now bearish. While this may also be a sign that the price bottom is near, BTC may still go lower in the short term without sufficient spot demand.

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