In a recent analysis by TradingRage, Bitcoin's price has been aggressively dropping, breaking below the significant $60K support level and the 200-day moving average at $58K. This is a concerning signal as the 200-day moving average usually holds the price during Bitcoin bull markets. If the $57K support level fails to halt further decline, a much deeper drop is likely.
On the 4-hour timeframe, the price dipped below $57K following the breakdown of the $60K support zone. However, the RSI indicator has entered the oversold region, suggesting a potential recovery or a pullback toward the $60K level in the short term.
Despite the aggressive drop, market sentiment analysis shows that Bitcoin funding rates are currently negative, indicating more sellers than buyers. This could be the first sign of the price finding a bottom, similar to previous instances when the metric displayed negative values. While caution is advised, a short liquidation cascade could occur in the coming days, potentially leading to a quick price recovery.