Bitcoin Price: Will Bitcoin Drop to $50,000 Before Halving?

BTC liquidations hit a whopping $191 million in 24 hours, with Bitcoin price finding relief as the 200-day EMA stabilized at the $62,000 support.

Story Highlights As Bitcoin drops to $62,000, the tables shift, altering the technical structure. The $60,000 area is a potential support level that could increase demand for BTC as traders buy the dip. If the decline continues, Bitcoin price could complete the typical pre-halving 20% ​​retracement.​

Cryptocurrencies have been in the red since the weekend sell-off, with Bitcoin falling from near all-time highs to $66,000. There were some signs of stabilization on Monday, but Tuesday's volatility was unlikely to trigger broader losses.

BTC price remains at $62,500 after retracing 8.6% in 24 hours. Altcoins including Ethereum have also seen significant corrections due to their recent strong correlation with Bitcoin price movements.

Trading volume increased 63% to $67 billion, indicating that investors are more interested in selling BTC than buying. The market capitalization dropped significantly to $1.24 million, reflecting significant selling pressure.

Bitcoin Price Prediction: How to Navigate BTC’s Pre-Halving Pullback?

Bitcoin’s plunge from its all-time high of $73,000 has resulted in a dramatic shift in technical and fundamental factors. IntoTheBlock’s blockchain data shows demand and supply for the coin, revealing new solid resistance zones.

The IOMAP model reveals current important resistance bands from $64,960 to $66,845, from $66,845 to $68,730, and finally from $70,615 to $72,500. Unlike last week when Bitcoin hit a new all-time high, approximately 58.15% of addresses are in the red, or out of money.

It is unclear when Bitcoin will end this retreat and usher in a major recovery, especially since the support area (green circle) in the IOMAP model looks smaller than the resistance area (red circle).

Currently, Bitcoin price has settled above the $62,500 support and is hovering at $63,515. The relative strength index (RSI) is near oversold territory, which means the selling is intense and the trend may be reversing.

Traders are also wary of buying the dip immediately for fear of being liquidated. According to Coinglass data, total BTC liquidations in the past 24 hours reached $191 million, of which short positions were only $44 million. Cumulative liquidations across the market were $664.5 million.

How to respond to Bitcoin’s plunge:

The four-hour chart suggests there may be major support near $62,000, which is reinforced by the 200-day exponential moving average (EMA). Bitcoin has reached this level, giving bulls an opportunity to assert their control and take back control for a major turnaround.

If losses exceed demand at $62,000, BTC will have another chance to reach $60,000 with support from the lower ascending trendline. Further correction below this important support level would mean Bitcoin completes its typical pre-halving 20% ​​retracement to $57,500.

Bitcoin’s rise over the past few months has been aided by the approval of a U.S. spot ETF. Demand for ETF products has increased significantly, underpinning growing interest from both institutional and retail investors.

In addition to bringing positive sentiment to the market, ETFs also increase demand for Bitcoin. Thus, the right supply and demand dynamics are created for a breakout above $73,000.

On the other hand, the ongoing sell-off can be attributed to investors taking profits ahead of the April halving. After the halving, Bitcoin prices are expected to rise like never before on rising ETF sentiment, reducing supply and surging demand.

If investors focus on buying the dip, a further decline below $60,000 may be ineffective, paving the way for another break above $70,000. Be sure to remember the highlighted IOMAP levels. This way traders can avoid falling into bull traps and avoid having their positions liquidated. #slerf #sol #BTC #ETH #BOME