- Bitcoin witnessed a significant fall, declining beneath $39,573 – $46,406 demand territory.
- The latest crash ruined BTC’s price structure, suggesting further declines towards low levels at $30,000.
- On-chain metrics support the possible bearish move.
Bitcoin has seen substantial plummets within the past three weeks. The latest declines worsened Bitcoin’s outlook, hinting at further plunges.
BTC Contemplates Further Declines
Bitcoin entered a bearish market after dipping below the demand zone, stretching from $39,573 – $46,406. Moreover, the crypto might extend the downswings. Remember, the mentioned demand regions served as massive support created during an upside action. Therefore, market players that purchase $BTC around the barrier remain underwater because of the 4 December crash.
An upsurge that kick-starts after a significant close beneath $39,573 will encounter massive selling pressure from the underwater investors as they attempt to break even. Therefore, Bitcoin’s fate depends on $39,573 and this week’s close.
Failure to recover the latest losses might lead to an 11% downswing by BTC, exploring the support at $34,266. Buyers can come back for an uptrend here. Such a move seems unlikely as the market maker can drag Bitcoin beneath $31,671 to gather sell-side liquidity beneath the many lows created in 2021 July.
The average buy-in value by MicroStrategy as $29,860 stands beneath the psychological barrier at $30,000 and stays within the mentioned liquidity region. Therefore, enthusiasts might expect Bitcoin to retest $30K or below.
IntoTheBlock’s GIOM model backs Bitcoin’s potential crash. The index shows BTC’s next support stretches between $11,101 and $34,287. Here, nearly 4.92 million wallets bought 2.43 million $BTC at a $19,668 average price. Therefore, buyers’ momentum from players accumulating in this region will likely absorb any downward move.
The overall liquidations in the broad market depict the grim picture by the latest crash. Bitcoin’s 12% crash within the past 48 hours had long positions worth $346 liquidated.
Meanwhile, a weekly candle close beyond the supply region’s top limit of around $47,257 will cancel the pessimistic outlook. Nevertheless, Bitcoin should ensure a weekly close beyond $52,150 for a steady bullish case. That way, the alt will form a high higher, attracting sidelined buyers. Such a scenario will see BTC retesting the psychological barrier at $60,000.