BTC Price Plummets to $60K Amid Middle East Tensions

The price of Bitcoin is currently experiencing a downward trend due to rising tensions in the Middle East. A crucial support level has been breached, potentially resulting in further declines in the near term.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

On the daily chart, the BTC price has fallen below the significant $64K threshold and the 200-day moving average, which is situated around the same level. Currently, the $60K support is holding firm, as investors remain optimistic that this downturn is merely a temporary setback.

Nonetheless, the RSI indicator is hovering just below 50%, indicating a bearish momentum shift, and a further drop towards $56K remains a distinct possibility.

The 4-Hour Chart

The 4-hour chart reveals a notable shift towards bearish market dynamics in classical price actions. The price has decisively breached a significant bullish trendline. Nevertheless, the price has rebounded from the $60K level, as the RSI indicates an oversold condition.

A full recovery seems unlikely, as the market structure suggests a deeper correction towards the $57K level is more probable. This scenario could be negated if the price rises above the $64K level soon.

On-Chain Analysis

By Edris Derakhshi (TradingRage)

Bitcoin Open Interest

Despite the recent decline in Bitcoin’s price, the metrics for future market sentiment remain elevated.

The following chart illustrates Bitcoin’s open interest, representing the total number of open perpetual futures positions, both long and short.

As indicated by the recent downturn, the slight decrease in open interest suggests that a long liquidation cascade has not yet taken place. Should prices decline further, a capitulation event becomes increasingly likely, which could trigger a swift market crash pushing prices closer to the $50K range.