Bitcoin (BTC) Price Prediction: Will the Bearish Trend Result in a Drop Below the $56000 Level?

With the release of Mt. Gox Bitcoins, the broader crypto market has experienced a massive surge in supply pressure. As market analysts expect the supply to continue in the coming days, the crash could continue in the BTC and the altcoins price alike.

The release of Mt. Gox Bitcoins has brought about a massive surge in supply pressure within the broader crypto market. As per market analysts, the supply will continue to persist in the coming days, leading to a potential continuation of the crash in BTC and altcoins prices.

After crashing below the critical support zone of $60,000, the BTC price trend has marked its third consecutive bearish day. The decline is now testing the dynamic support of the 50D EMA, hinting at another breakdown.

Moreover, as supply increases, long liquidations are also rising. Will the bearish trend culminate in a drop below the $56,000 level, testing the psychological mark of $50,000?

Let’s delve into our detailed price analysis to gain a clearer perspective on the BTC price trend. Additionally, you can explore our Bitcoin price prediction to assess the probability of Bitcoin reaching the $100,000 milestone this year.

Bitcoin Price Performance

Amidst an ongoing correction, the BTC price has now declined by 17% over the last 28 days, crashing below the crucial $60,000 mark. The negative cycle within the flag pattern suggests a bearish reversal as the bottom support breaks down.

Tradingview Chart: BTC/USD 4 Hr Time Frame

The declining price trend influences a downtick in the 50D EMA and warns of a death cross with the 200D EMA. At present, the BTC price trades at $58,444 with an intraday drop of 2.81%, forming the third bearish candle to test the 200D EMA.

The Bitcoin price action completes a triple black crow pattern and hints at a breakdown below the dynamic support. Furthermore, the release of Mt.Gox payments accounts for massive long liquidations, amounting to nearly $80 million within 48 hours.

Will BTC Price Drop Below $56,000?

As fear and supply continue to amplify within the crypto market, bearish anticipations are intensifying. At the 200D EMA, the chances of a breakdown are significantly higher than a reversal as trading volume surges by 55% in 24 hours.

With the declining trend in motion, the next crucial supports for BTC price lie at $56,000 and $52,000.

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