The probability of a BTC drop to $52,000 is increasing after the recent decline

The price of Bitcoin has recently moved lower, making lower highs and lower lows and breaking through various support levels.

This comes after seemingly positive reports on US inflation, leading some investors to wonder why the market is falling.

Technical Analysis

By TradingRage

The daily chart

On the daily chart, the price has been falling since it rejected from the $70,000 level and has also broken below the 200-day moving average, located around $58,000. The market is currently around $57,000.

However, the 200-day moving average has rejected the price, preventing it from recovering. Hence, a drop towards the $52,000 level could be likely in the coming weeks.

Source: TradingView The 4-hour chart

On the 4-hour chart, things become even clearer. The price has again been rejected from the long-term bearish trend line. If the $57,000 support level is broken to the downside, a quick drop towards $52,000 will be more likely.

A new downtrend would be imminent, with the RSI falling below 50%. On the other hand, this scenario would fail if the trend line breaks on the upside.

Source: TradingView On-Chain Analysis

By TradingRage

Bitcoin Miner Reserve

While technical analysis can be a decent tool for forecasting price action, it is also beneficial to look for the underlying reasons behind the recent downtrend. Analyzing the behavior of BTC miners could provide useful insight into achieving this goal.

This chart presents the Bitcoin miner reserve metric, which measures the amount of BTC miners have in their wallets. Downtrends in this metric indicate that miners are selling more Bitcoin than they are mining, which can be a bearish signal.

Over the past few months, the Miner Reserve metric has been dropping rapidly. This could indicate that they are not convinced of a new Bitcoin uptrend. As a result, this selling pressure could lead to a further drop in the price.

Source: CryptoQuant SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for details.

TradingView Cryptocurrency Charts.