Today's Bitcoin Analysis: Breaks $58K, Will BTC Prices Continue to Fall?

Bittime - Today's Bitcoin analysis shows that Bitcoin failed to start a new increase above the $62,850 resistance mark. In contrast, Bitcoin experienced a significant decline, dropping 5% to break through $58,000

Bearish Trend Dominates Bitcoin

Bitcoin struggled to initiate a decent recovery above the $62,850 resistance level. The bearish trend dominated and pushed Bitcoin below the $61,200 support area. The price then fell drastically below the $60,000 level, even breaking through the $58,000 level. The lowest point was recorded at $57,890, and currently the price is consolidating those losses.

Bitcoin Price it is currently trading below $61,500 with the 100 hourly moving average. In addition, in today's Bitcoin analysis, a bearish trend line connecting with resistance at $60,000 was formed on the hourly chart of the BTC/USD pair.

The price may face resistance near the $60,000 level and the trend line if there is a decent upside. The first major resistance will be near the $60,850 level, and the half-way Fib retracement level of the move would be down from the $63,798 swing high to the $57,890 low.

The next major resistance is $61,500. A clear move above the $61,500 resistance might start a steady rise and send the price higher. In such a situation, the price may rise and test the $62,250 resistance. Further gains may send BTC towards the $63,500 resistance in the near term.

Will Bitcoin Drop Further?

If Bitcoin fails to rise above the $60,000 resistance zone, there is a possibility that Bitcoin will continue to fall. The immediate support below is near the $58,250 level.

Further losses might take the price to the $56,500 support zone in the near term; The first major support was $58,000, and the next support is now forming near $57,800.

Blockchain analysis company Glassnode revealed in a post on X how BTC is in a unique situation.

Short-term red Bitcoin holders | Source: @glassnode via X

Bitcoin has recorded an increase of more than one hundred percent over the past year, placing it in the safe zone. However, the data shows that many short-term holders (STH), especially traders and speculators, are now under pressure. STH is an entity or address that purchased coins in the last 155 days or before the end of 2023.

During this period, the price of Bitcoin has reached an all-time high. Speculators predict that prices will continue to rise, but the reality is different. After breaking through $70,000 and then rising to $73,800, Bitcoin price fell sharply.

In mid-May, Bitcoin prices briefly dipped to $56,800 before surging back to around $71,500. Despite this, buyers were unable to breach the $72,000 level closely watched by traders, indicating that sellers dominated the market at the time.

Glassnode mentioned that although STH experienced pressure, only those who bought and HODLed made a profit over the past year. With a doubling in price over the previous twelve months, Bitcoin is technically in an uptrend, matching gains from the second half of 2023.

Bitcoin has experienced significant gains over the past year, but sharp price fluctuations are causing stress for short-term holders. With the current bearish pressure and challenges to break through major resistance, Bitcoin may face further downside if there is no significant recovery. Investor confidence and legal stability will be key factors in future price movements.

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