Bitcoin Under Pressure; Will BTC Fall To $50,000 Or Worse?

Bitcoin is under immense selling pressure but relatively stable. After dropping to $53,500 and recovering over the weekend, bulls are relieved. However, looking at price action, the path of least resistance is southwards. Technically, sellers remain in charge. Every high could offer entries for sellers to double down, targeting last week’s lows and $50,000. From the candlestick arrangement, if sellers press on, there is a high probability of the coin sinking to as low as $50,000 in the coming sessions.

So far, Bitcoin is down 3% in the past day and 12% in the previous week of trading. At the same time, the average trading volume is lower, at over $26 billion. The contraction in participation is expected, considering the low capital inflow over the weekend. Even so, this will likely increase today and throughout this week as traders try to re-balance their portfolios.

Bitcoin daily chart for July 8

Traders are watching the following Bitcoin news today:

  • After Germany decided to offload thousands of BTC last week, impacting sentiment, prices tanked—liquidating hundreds of millions, if not billions of longs. The pressure could be on this week as data shows their transfers to exchanges.
  • More BTC continues to move out of exchanges. According to reports, over 35,000 coins have been withdrawn from BitMEX, a crypto perpetual exchange, in the last week. On-chain data shows that there are only 19,000 BTC.

Bitcoin Price Analysis

BTC/USD remains under immense selling pressure, down 22% in the past week.

Even as the coin sinks, there are hints of strength.

For instance, the July 4 drop was accompanied by high trading volume, and the bar closed with a long, lower wick pointing to demand.

Nonetheless, since prices broke below $56,500 last week, bears took charge.

Accordingly, traders can short on every high, targeting $53,500 and later $50,000.

Any break above $60,000 will invalidate the downtrend.

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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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