How low can the price of Bitcoin go?
Bitcoin (BTC) fell below $50,000 after the Bank of Japan announced that it would raise interest rates from 0% to 0.25%.
This decision directly affected the US stock market, as traders borrowed Japanese yen at low interest rates to buy assets in the US market. This paradigm shift has directly affected risky assets, with BTC experiencing further corrections.
Bitcoin price repeats the “low high” trend from Q2
Bitcoin saw its third low high (LH3) on July 29 when it briefly touched $70,000. This particular pattern marked a strong bearish reversal at each point in 2024, with BTC currently down 25% from LH3.
Previous lows seen in April and June 2024 resulted in major corrections of 23% and 26% respectively.
Where is Bitcoin's next key support level?
The Bitcoin Flash Crash caught everyone off guard. The BTC price pair failed to hold its previous support levels at $60,000 and $57,000, eventually falling below $50,000.
Axel Adler Jr, CryptoQuant Contributing Analyst, noted that the BTC price recorded a fifth instance when the BTC market structure formed a new low-low pattern “The price fell below the lower limit of the medium risk 9% average purchase price. Active investors.”
“The funding level for this group is $48K.”
Additionally, Capriole Fund founder Charles Edwards believes that BTC should start looking again at its current level of around $52,000. However, if BTC fails to hold above $50,000, the next key support is said to be around $44,000.
The lower $40K-levels served as a consolidation range from December 2023 to February 2024.
6.39M addresses protect BTC at $42k.
While prominent pundits suggest that BTC should rally around $48,000 or $44,000, data from Intotheblock suggests that a set of major holders will be headed further down.
About 6.39 million addresses currently hold 2.38 million BTC at an average of $42,446. A retest of $42,466 would mean another 18% correction from the current market price. This can certainly create more panic and have a significant impact on buyer confidence.
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From a technical point of view, the bid range of $44,000 to $48,000 makes sense as there is a weekly order block formation in this range, which intersects with two other indicators.
Therefore, the price of BTC has a good chance to retest the weekly 100-EMA (100-EMA) in this region – and the 0.5 Fibonacci line is at the same level at $44,672.
The views, ideas and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
