As global markets fall, a bear market has begun to appear in the world's financial markets. Against the backdrop of the index plunge, the cryptocurrency market has suffered a heavy blow, with BTC prices falling to the $50,000 support level and Ethereum falling to $2,250. As selling pressure shakes leveraged bullish positions, long liquidation data has soared. In addition, more and more FUD warns that the bearish trend will continue this week. Will this week's bear market lead to a sharp drop in Bitcoin to $45,000, or is there a possibility of a rebound?
Bitcoin price performance
Under the dominance of bears, BTC price has suffered huge market valuation losses and is down nearly 15% today. Currently, Bitcoin is trading at $50,103 and has broken below a key support trendline to form a bearish engulfing candle.
The bearish candle in BTC price broke the multi-month sideways range and signaled a selling opportunity. Moreover, it broke the bullish flag pattern and today’s results are bearish.
The cryptocurrency market lost $607 million worth of long positions today, according to data from Coinglass. Total liquidations have reached billions of dollars in the market over the past 24 hours, including 90% of long positions being liquidated.
Technical indicators:
RSI: The daily RSI line quickly reversed from the overbought boundary and fell below the oversold boundary line. Therefore, the momentum indicator reflects a sharp downward trend in the BTC price.
EMA: The breakdown of the 200-day EMA has resulted in a bearish reversal at the 50-day and 100-day EMAs. The first bearish signal appeared on the chart with the crossover of the 100-day and 50-day EMAs.
Will BTC price reach $45,000? Is $100,000 just a pipe dream?
Bitcoin failed to hold onto a bullish flag pattern on the daily chart as bears overwhelmed the bulls. Moreover, the increasing pressure above the $50,000 support level portends a continued decline in BTC price this week.
With the next support at $47,000 and $43,000, Bitcoin’s downside momentum is likely to pick up. A global market crash will exacerbate the bear market, supporting downside momentum.
When it comes to the $100,000 dream, broader market sentiment is filled with fear, with no immediate recovery in sight. However, if a recession is avoided, potential interest rates in September could be the long-awaited bullish harbinger.