Bitcoin Melting: Even With Exchanges Buying, Is $50,000 Unavoidable?

Bitcoin is deep in red at spot rates, looking at price action in the daily chart. The coin is down double digits from all-time highs amid unrelenting bears. As things stand, bulls stand no chance unless there is a welcomed recovery from spot rates, racing above $60,000 and above $63,000. If this doesn’t pan out, the path of least resistance will be southwards, with the potential of the world’s most valuable coin even slumping to as low as $50,000.

At spot rates, Bitcoin is down 8% in the past day and 12% from the last trading week. Meanwhile, as prices trend lower, more traders are shorting and aligning with the primary trend. So far, the average trading volume exceeds $49 billion, levels last seen when the coin was rallying towards all-time highs.

Bitcoin Daily Chart for July 5

Traders should watch the following Bitcoin news events today:

  • Amid the sharp sell-off, solid data shows that options traders are net bullish. Going by their recent bets, it appears that more are banking on the coin to shake off current weakness and bounce sharply.
  • Some analysts think Bitcoin prices could be far worse than is the case. This is so because exchanges have been buying the dip, artificially supporting prices. Even so, it remains to be seen for how long exchanges will continue buying.

Bitcoin Price Analysis

The path of least resistance is south, per the formation in the daily chart.

Thus far, BTC/USD is down 27% from all-time highs.

Of note, BTC has fallen below two crucial support levels in $60,000 and, earlier today, $56,500. The latter marked May 2024 lows, and was the primary support of the May to June 2024 range.

As Bitcoin plunges today, traders should be prepared for the worst now that BTC bears eased past $56,500 and May 2024 lows.

From this, every attempt high offers entries for aggressive sellers to unload, targeting $50,000 and $45,000—which marks January highs.

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Dalmas Ngetich
Dalmas Ngetich
Technical Analyst and News Reporter
Dalmas is a technical analyst and news reporter covering Forex, commodities, crypto, NFTs, blockchain, DeFi, and blockchain.
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