Bitcoin falls below $60,000 and drops to near $58,000
Bitcoin fell below $60,000 on Thursday, a level many traders are watching closely. The decline hit an intraday low near $58,000, erasing all of June’s gains. A sell-off in big tech stocks appears to have reduced investors’ appetite for riskier assets like crypto.
Bearish trends emerge on charts
On the four-hour chart, the price action has formed what looks like a rounded top pattern. This pattern occurs when buying pressure slowly fades and the price falls in a smooth curve. To obtain a price target from this pattern, you measure the height of the curve and project it below the support level. For Bitcoin, that target sits at just under $54,000. This would represent a drop of approximately 8.9% from current prices.
There is also a bear flag pattern on the daily chart. Bitcoin has broken down from this flag structure, which independently indicates the same downside target around $54,000. The fact that two models are pointing to the same level makes the bearish case a little stronger, I think.
On-chain data adds to case
In addition to technical patterns, on-chain data from Glassnode shows similar signals. THE MVRV price bands compare the market price of Bitcoin to the average price of the last movement of the coins. The 1.0 MVRV band, shown in green, was near $53,390 on Wednesday. This almost matches the $54,000 target shown in the charts, turning this area into a possible support zone.
If the sell-off continues and breaks below $54,000, the next stop could be the 0.8 MVRV Band Near $42,700. Historically, major bear market bottoms have formed around this lower blue band. At this point, unrealized losses become extreme and the risk of panic selling increases. But it’s too early to tell if that will happen.
Right now, Bitcoin is testing a key level. The next few days should show whether $54,000 holds or the bears push it lower. It’s possible that prices will rebound, but trends suggest caution for now.
