Why Did the Bitcoin Price Crash Below $70K and is the Bleeding Over? (Bitcoin Price Analysis)

Bitcoin’s price has been having difficulty approaching its all-time high of $75K and is still consolidating.

On Friday, the cryptocurrency tanked below $70K, and if the current level supporting the price breaks down, an even deeper correction could be expected.

Technical Analysis

By TradingRage

The Daily Chart

On the daily timeframe, the price has been hovering around the higher boundary of the large descending channel, failing to break it to the upside with momentum. The $69K support zone is currently holding BTC, preventing it from dropping back inside the channel and toward the $60K level.

If the market somehow breaks above the $72K resistance level, a rally toward the $75K record high and even further would be imminent.

btc_price_chart_0906241
Source: TradingView

The 4-Hour Chart

Looking at the 4-hour chart, things seem tricky for Bitcoin. An ascending channel is currently being formed around the $70K mark. The price has already tested the pattern’s higher trendline and the $72K resistance level twice. It was rejected decisively and is testing the $69K support level once again.

A breakdown of this level could cause even more trouble. If the pattern is broken to the downside, a deeper drop toward the $60K would likely materialize in the short term.

With the RSI also below 50%, the bearish scenario seems probable.

btc_price_chart_0906242
Source: TradingView

Sentiment Analysis

By TradingRage

Open Interest

With Bitcoin’s price failing to make a new all-time high, investors are looking for a culprit. While the spot market metrics seem solid, the futures market can be responsible.

This chart presents the Bitcoin open interest, which measures the number of open futures positions in all exchanges. The higher the open interest, the more probable a liquidation cascade is.

A bearish divergence has formed, with the open interest making an all-time high recently and the price failing to do so. This has led to the correction that occurred yesterday. While it is still unclear whether the price can move higher, high open interest values are usually bearish for the market.

btc_open_interest_chart_0906241
Source: CryptoQuant

The post Why Did the Bitcoin Price Crash Below $70K and is the Bleeding Over? (Bitcoin Price Analysis) appeared first on CryptoPotato.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Latest posts

post-thumbnail
Polygon and Ethereum Investment Innovation: Spiko Launches Tokenized Mutual Funds for US Treasury and European Bonds
Two tokenized mutual funds for the US Treasury and European Bonds have been launched by Spiko and wi...
READ MORE
post-thumbnail
Cardano Founder Speculates: Does Elon Musk Possess 20% of Dogecoin’s Total Supply?
Cardano founder Charles Hoskinson recently speculated that Elon Musk might be holding 20% of DOGE su...
READ MORE
post-thumbnail
BlockDAG Clinches High-Profile Influencer Endorsement, Presale Climbs 1120%, Dwarfing PEPE Coin & Floki Prices
Floki Inu recently enjoyed a notable upswing following a robust investment from DFW Labs, while disc...
READ MORE
post-thumbnail
Terra Classic Nears Decision: Proposal 12114 to Redefine Burn Tax Allocation
The Terra Classic community is voting on Proposal 12114 which aims to revise the LUNC burn tax to al...
READ MORE
post-thumbnail
TON Price Up 4% as TON Blockchain Launches Open League: Win $40M+ in Rewards
The Toncoin network has attracted notable investments from legacy web3 venture capitals in addition ...
READ MORE
post-thumbnail
Ethereum ETF Approval on the Horizon: What It Means for Shiba Inu and Furrever Token Investors
The post Ethereum ETF Approval on the Horizon: What It Means for Shiba Inu and Furrever Token Invest...
READ MORE
post-thumbnail
Veteran Crypto Trader Predicts Bitcoin’s Market Cap to Equal Global Gold Reserves
The post Veteran Crypto Trader Predicts Bitcoin’s Market Cap to Equal Global Gold Reserves appeare...
READ MORE
post-thumbnail
Moody’s Delivers Critical Warning To Investors, XRP Gets Explosive Price Prediction
The post Moody’s Delivers Critical Warning To Investors, XRP Gets Explosive Price Prediction appea...
READ MORE
default post thumbnail
Rapper Gazzy Garcia Gets A Forehead Tattoo Featuring Solana, Says He Sold His SOL
The post Rapper Gazzy Garcia Gets A Forehead Tattoo Featuring Solana, Says He Sold His SOL appeared ...
READ MORE
post-thumbnail
After Regaining $0.01, Here is What’s Next for BOOK OF MEME (BOME) Price Rally!
The post After Regaining $0.01, Here is What’s Next for BOOK OF MEME (BOME) Price Rally! appeared ...
READ MORE
Read more posts