What's the lowest Bitcoin price possible?

Bitcoin has experienced a 10% decline from its all-time high, with numerous analysts suggesting the possibility of further drops as part of its regular consolidation periods.

Bitcoin tumbles $5,000 in 24 hours as interest rates jump — jomotoday.com

The value of Bitcoin (BTC) has seen a downturn, with its price dropping to $69,108, marking an 8% decline over the past three days from its peak of $72,000 earlier this week. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin experienced a sudden decrease from its high of $71,980 on May 21 to a low of $66,260 on May 23.

The decline in Bitcoin’s price aligns with an unforeseen market reaction following the approval of Ethereum exchange-traded funds (ETFs) in the United States on May 23. This sell-off effect after the approval has led traders to speculate on the extent of the downturn before witnessing a substantial rebound.

Let’s delve into the potential depth of Bitcoin’s price drop within the current corrective phase.

Bitcoin could dip toward $60,000

Mags, a crypto trader and analyst, observed that BTC’s recent surge was halted at the significant resistance point around its all-time high of $73,835. Mags predicts that the price is poised to consolidate around $65,000 before initiating another upward movement.

“Mags anticipates BTC encountering resistance near the upper range, foreseeing a period of consolidation around the mid-range ($65,000) before resuming its upward trajectory.”

My colleague George endeavored to determine if the BTC price had hit a potential local bottom. Referencing the recent correction from the March 14 peak, he suggested that the lows around $60,000 would be an attractive area to consider for long positions or as a target.

“Michaël van de Poppe, founder of MN Capital, noted that Bitcoin is currently consolidating within its typical range, a trend that has become increasingly familiar since the halving. He mentioned factors such as dollar-cost averaging and capital shifting from Bitcoin to Ether (ETH), contributing to an extended period of sideways movement.”

Bitcoin could retest the reaccumulation range low at $60,000

The reaccumulation phase of Bitcoin typically initiates a few weeks prior to its halving event, characterized by downward volatility occurring below the reaccumulation range. This phase concludes with a breakout from this range several weeks later. According to renowned analyst Rekt Capital, this phase may span up to approximately 150 days, or around five months.

With Bitcoin recently encountering resistance near the upper boundary of the current reaccumulation range, roughly at $71,500, the analyst suggests that the cryptocurrency’s price could continue consolidating within the range of $60,000 to $70,000 for several more weeks.

Rekt Capital previously elucidated that the range concludes when BTC breaks out from it, initiating a parabolic uptrend.

The 50-day EMA provides the first line of defense for Bitcoin

From a technical standpoint, Bitcoin’s price rested on critical support at $66,000. If this support is breached, there’s a risk of a decline from the present levels, drawing demand-side liquidity downwards towards the 50-day EMA, presently positioned at $64,838.

The 50-day Exponential Moving Average (EMA) is currently positioned within Bitcoin’s crucial support range, spanning from $64,000 to $66,120. This support level, which proved significant in March, was followed by a notable 17% price increase, leading Bitcoin to reach $72,777 by April 8th. As depicted in IntoTheBlock’s IOMAP chart, over 870,800 BTC have been acquired by over 1.42 million addresses within this price bracket previously.

Given the substantial support observed in this region for BTC’s price, in contrast to the resistance encountered during its recovery, it’s possible that this area could serve as a limit to the downside in the near future.