With the market showing bearish signals and a potential crash over the weekend, the focus has been on whether Bitcoin can maintain above $57,000 this week.
The cryptocurrency market has seen nearly $140 million in long liquidations recently, while Bitcoin is trading below $58,000. This marks a negative start to the week and month. Whether buyers can sustain Bitcoin above the critical support level of $57,000 will be a key question to watch this week, given that the current downtrend and bearish pattern could portend further lower prices.
Bitcoin Time Frame Puts Key Level at Risk
Bitcoin is at risk of a critical level as it tested the $57,200 support level with a 2.81% drop on Sunday, triggering a broader market crash. Currently, Bitcoin is trading at $57,515, up 0.36% intraday, but the overall decline is large, indicating a gradual increase in supply.
Downside risks intensify, and Bitcoin could break below the $57,000 support level and further test the $54,000 bottom. The daily and weekly charts show a bearish trend, while the 50-week EMA provides support. In addition, the 50-day and 200-day EMAs show a warning of a death cross.
On the 4-hour chart, Bitcoin price has formed a descending wedge pattern and has fallen below the $57,600 support level. In the past four hours, Bitcoin price has fallen by 0.37% and has broken the support trendline, signaling further bearish moves.
The 4-hour RSI chart shows a bullish divergence and a rebound after the breakout could find support at $54,552 or $51,348. The 4-hour chart also shows that the 50-day and 200-day EMAs are bearish after the death cross.
In case of a bullish reversal, the uptrend will face dynamic resistance at $59,661 and $60,722. The target range for Bitcoin price is likely to be $61,451 and $64,596.
Will investors continue to hold Bitcoin?
According to the latest update from Ali Martinez, trading activities of major assets such as Bitcoin have dropped significantly, and capital flows are lower than stablecoins. This shows that the market has become cautious and investors are more inclined to transfer funds to stablecoins in search of safety.
This shift in investor behavior generally reflects market uncertainty, prompting investors to adopt stablecoins as a defensive measure while potentially waiting for more favorable market conditions to re-enter the market.
However, despite the decline in market enthusiasm, the number of Bitcoin addresses holding at least 100 BTC increased by 283 in just one month, reaching a 17-month high of 16,120 wallets, according to Santiment data. This shows that a portion of investors are still holding on to Bitcoin, demonstrating their firm belief in the long-term value of the asset.
