Bitcoin, the leading cryptocurrency, continues to experience serious declines in recent weeks. Bitcoin Price dropped to $64,275 with the correction caused by miner sales and halving. An analysis indicates that Bitcoin is showing signs of return and the $ 70,000 level will be broken again.
Highlights
In the midst of flag pattern formation, $BTC price is preparing for extended consolidation before breaking out.
The coin price is trading above the 100 and 200-day EMAs, indicating a broader uptrend.
Bitcoin's intraday trading volume is $8.03 Billion, which represents a 60% loss.
The #Bitcoin price forecast shows that volatility has decreased over the weekend, as evidenced by the Doji candles on the daily chart. The easing selling pressure halted the correction trend in altcoins, with many reconsidering critical monthly support levels.
However, selling pressure could potentially push the asset below $60,000 as BTC experiences sustained outflows from US-listed ETFs and miners capitulate.
Bitcoin Price: Flag Pattern Sign of Potential Upside
The current correction trend in BTC started in the second week as the price rebounded from $72,000. The downtrend caused the asset to trade at $64275, down 10.7%, while its market cap dropped to $1.267 trillion.
Additionally, according to crypto analytics firm IntoTheBlock, Bitcoin miners have sold more than 30,000 BTC since June, equivalent to nearly $2 billion, marking the fastest pace of sales in more than a year. This significant sell-off follows the recent Bitcoin halving, which tightened miners' profit margins and led to significant liquidations of reserves.
However, daily chart analysis shows that this correction is part of the horizontal trend in the flag formation. The two trend lines that act as dynamic resistance and support are the key factors influencing the price movement of BTC.
If the pattern is correct, the current consolidation will temporarily turn sideways before the cryptocurrency initiates the next rally following a resistance break.
Moreover, CryptoQuant writer Axel Adler Jr. highlighted that for short-term holders, the Output Profit Ratio (SOPR) relative to the 90-day moving average has fallen below 1.0. This could signal the end of the current market correction and the beginning of a new uptrend.
SOPR measures the profit and loss of Bitcoin holders. A value below 1.0 indicates a sale at a loss; It usually signals a market bottom and potential reversal.
Therefore, with a broader uptrend, BTC is likely to break through the flag pattern with a decisive breakout. A successful breach will set up the recovery to $89,150, followed by an extended rise to $13,500.
Technical Indicator
EMAs: A bearish crossover between the 20- and 50-day Exponential Moving Average supports the extended correction in BTC.
Average Directional Index: The 21% increase in the daily ADX slope indicates that sellers have strengthened their grip on this asset and continue as the dominant force.
