Bitcoin Extends Correction! Traders Can Expect BTC Price can Drop to $59K

Bitcoin Extends Correction! Traders Can Expect BTC Price can Drop to $59K

Several of the top ten cryptocurrencies by market capitalization lost 6% or more, including high-flyers Solana (SOL) and Polkadot (DOT). As a result, the global cryptocurrency market cap slipped below $3 trillion for the first time this week, after briefly exceeding it earlier in the week. 

BTC Price Action

The Bitcoin price is continuing trending south, as the coin remains above the 9-day and 21-day moving averages. However, another pullback appears to be on the way, and the coin is likely to break below the 9-day moving average. 

Meanwhile, a breakdown below the moving averages is supposed to continue in the direction of the previous trend. In this case, BTC/USD is expected to drop and stay below to hit the critical support levels at $59,000, $57,000, and $55,000

if the bulls re-enter the market, the BTC/USD could face resistance at $65,000. The Breakout above this level will further send it to potential resistance levels of $70,000, $72,000, and $74,000.

At present, the market might start to trade sideways or undergo slight uptrends as the RSI indicator moves below 40-level. This weekend traders can expect BTC price to trade around $62,000. If the price continues to drop below the lower boundary of the channel, it could reach the $61K support level and below.

What do Analysts Say?

Popular analysts, on the other hand, expected and applauded such BTC price action. 

According to Twitter trader Galaxy, a dip to 59-61k followed by some consolidation would be the best way to continue the bull-run.

“Might not happen but it would be extremely healthy for both $BTC and alts. Be prepared either way.”

With the exception of Binance and Bybit, funding rates on exchanges remained somewhat increased, implying that a price drop could be on the way.

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