- Bitcoin price lost $1,000 in just five minutes on Wednesday morning to tank below the $60,000 psychological level.
- BTC bears are eager to see the correction continue as they target $50,000.
- Analysists say that Bitcoin will bullish even if it drops to $50,000 as bulls speculate gains towards $70,000.
Bitcoin price dropped $1,000 in just five minutes on Wednesday morning in a fresh dip that saw the big crypto tank below the $60,000 psychological level.
According to data from CoinMarketCap, BTC has been down 6.05% in the last 24 hours having lost approximately 7.95% of its value over the last week.
The correction has tested support around $57,000, as the bulls appear determined to take the BTC price lower.
Bitcoin Price Bleeds As Bears Target $50K
Bears are eager to see a continued Bitcoin correction to close below $58,000 in the near-term with some key analysts and pessimists predicting that the flagship cryptocurrency may correct to around $50,000. However, holders are taking advantage of the BTC price pullbacks to add more Bitcoin to their reserves as they remain optimistic that Bitcoin will rise to around $100,000 by the end of the year.
According to a report by Cointelegraph analysts, Bitcoin would still remain bullish even if it dropped to $50,000.
It is still unclear whether BTC correction will continue to make the final drop to $50,000. Meanwhile technical indicators show that the bearish leg might continue in the near term.
For example, Bitcoin is trading at $58,912 in a second bearish session with the Moving Average Convergence Divergence (MACD) indicator (blue) moving downwards below the signal line (orange), suggesting a bearish momentum. Also note that the MACD sent a sell Bitcoin signal on the daily chart when the 12-day exponential moving average (EMA) crossed below the 26-day EMA.
The downward BTC price movement will gain traction when the MACD crosses the zero line into the negative region. Note that the MACD is a technical index that follows the trend of the asset and calculates the momentum.
BTC/USD Daily Chart
Moreover, the Relative Strength Index (RSI) is nose-diving away from the overbought region and its current position around 53.74 suggests that the bears have an upper hand and getting more aggressive. The RSI is also a trend following indicator and calculates the strength of the bulls and bears. As the RSI drops from the overbought area, it infers that sellers have more influence.
Nevertheless, the Bitcoin price might just be displaying a health correction that gives BTC advocates to buy lower as they speculate higher gains in the coming days.
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