The growing bearish influence over the market has successfully managed to drop the BTC price by 5.65% in the last seven days. Currently, the Bitcoin market cap hangs at $1.10 trillion.
As the 24-hour liquidation is on the verge of $100 million, will the sell-off rally in Bitcoin result in a crash to $50,000? Let’s find out.
Bitcoin Price Performance
In the past 24 hours, the Bitcoin price has dropped by 1.14% and is currently trading at $56,025. Struggling to sustain dominance above the $56,000 mark, the Bitcoin price forms an intraday doji candle.
In the daily chart with the doji candle, the BTC price hangs near the base level of $55,852 of the Fibonacci retracement tool. If the BTC price manages to close the day with the doji candle, the possibility of a reversal will increase significantly. Further, a potential morning star could be witnessed for a recovery rally.
Tradingview
Despite the ongoing bear cycle, the daily chart reflects a bullish flag pattern. However, the support trendline is far away from the current price and can result in a price drop to the $52,500 level.
US Job Market FUD Drops Bitcoin
With the US jobs report coming on Friday, a deciding factor in the upcoming rate cut discussion. If the report reveals a shortage of jobs reflecting an economic slowdown, the chances of a rate cut will increase to boost the economy. The rate cuts make lending easily available and increase the investment inflow into risky assets like Bitcoin.
Hence, with a potential rate, the BTC price will likely skyrocket and reclaim the $60,000 mark.
However, with the FOMC meeting in 12 days, the CME Fed Watch Tool reveals a 41% chance of a 475 to 500 basis point rate cut. Hence, the short-term panic with the Job data release is likely to fade next week, resulting in a recovery run.
Will BTC Price Hold Above $55K?
Despite the ongoing downfall, the BTC price is reflecting indecision in the market with a Doji near $55,500. Hence, the chances of Bitcoin surviving the crash above the $55K mark are significant.
However, a minor correction is possible if the sentiments deteriorate near the Job report release. On the positive side, a slowdown in the Job sector will result in a sentimental boost for the crypto market. The increased rate cut chances will boost the BTC price to the $60,000 mark.
Concerned about how the BTC price will conclude in the year 2024? Our Bitcoin (BTC) Price Prediction addresses this and more!
Credit: Source link
