Bitcoin's recent price decline has left the market in a state of uncertainty. The cryptocurrency has lost key support zones, including the $60K level and the 200-day moving average at around $58K, which has historically held the price during bull markets. However, the current trading price around $57K and the sizeable downward shadow in yesterday's candle may suggest a possible halt in the decline and potential for short-term consolidation or recovery.

Despite the bearish trend observed in the last few weeks, with consistent lower highs and lows, the retesting of the $57K level from below could spark hopes for a bullish rebound. The RSI recovery from the oversold region supports this, although a reversal cannot be expected as long as BTC is trading below the critical $60K level.

On-chain analysis reveals a significant Bitcoin hashrate drawdown, indicating a massive capitulation by miners. While this is generally a negative sign, it could also signal a potential end to the recent downtrend, as it did in January 2023. This situation might encourage hardcore Bitcoin believers to accumulate, while the broader market waits to see if the bottom has been reached or if the bear market is just beginning.