- The Bitcoin price looked to be in freefall, as it slumped below $61,000
- BTC has had an extremely bearish start to the week and had dropped on Monday as well.
The Bitcoin price continued to drop as sellers remained in control. After slipping below $64,000, the current session sees BTC at $61,200 as sellers look to push the price towards $60,000. BTC has been bearish since Sunday, with the price registering a drop of 0.68%, ending the weekend on a bearish note. The price continued to drop on Monday as it slipped to $63,957. The current session sees BTC down by over 4% as it drops towards $61,000.
Bitcoin Price Chart Indicates BTC Could Drop To $60,000
The Bitcoin price was quite bullish at the start of the previous week, registering a marginal increase on Saturday before pushing above the 20-day SMA on Sunday and settling at $63,683. The price continued to push up on Monday, as it rose by over 6%, settling at $67,541. However, after reaching this level, the price turned bearish, as it dropped marginally on Tuesday and then dropped by over 3% on Wednesday, settling at $65,080, before posting a marginal recovery on Thursday and settling at $65,407.
Image: BTC/USD daily
After Thursday’s marginal recovery, the Bitcoin price dropped again on Friday, falling by 1.55% and settling at $64,396. The weekend was a mixed bag for BTC, as it rose to $64,742 on Saturday and then dropped to $64,302 on Sunday to end the weekend on a bearish note. Monday saw BTC continue to be bearish as it dropped further to $63,957, while the current session sees the price down by over 4%. We can see that the Parabolic SAR has flipped to bearish, while the MACD is also currently bearish, indicating that the price could drop further.
Looking at IntoTheBlock’s IOMAP for the Bitcoin price, we can see that BTC has strong support at around $56,341. At this price level, over 970,000 addresses have bought over 475,000 BTC.
Image: IntoTheBlock
Looking at the 4-hour Bitcoin price chart, we can see that BTC had surged past the 20 and 50-bar SMAs on the 7th, pushing up to $68,503. The price could not stay at this level, as it dropped to $66,580 before rising to $68,302. However, after reaching this level, the price turned bearish, as it slipped below the 20-bar SMA and settled at $64,862. After a marginal recovery, the price continued to drop and slipped below the 50-bar SMA, dropping to $63,381. The price recovered from this level, as it rose to $65,950. However, BTC fell drastically after reaching this level, falling to its current level of $61,000.
Image: BTC/USD 4-hour
Bitcoin Taproot Is Live
Bitcoin has recently activated the so-called Bitcoin taproot upgrade after reaching block 709,632. This is one of the most important milestones (aside from price) reached by the Bitcoin blockchain in recent years. In addition, this is the first upgrade to Bitcoin since Segwit’s implementation back in 2017.
With this new upgrade, the Bitcoin network becomes more private for those transactions that require multiple signatures, known as multi-sig transactions. Moreover, there might be a possibility for the Bitcoin network to run more advanced smart contracts in the future. Better and more advanced smart contracts, which means it might be possible to unleash a new set of functionalities for Bitcoin.
Alyse Killeen, the founder and managing partner of the Bitcoin-focused venture firm Stillmark, explained that Taproot is an important upgrade that opens new opportunities for entrepreneurs and investors.
On the matter, Killeen stated:
“Taproot matters, because it opens a breadth of opportunity for entrepreneurs interested in expanding Bitcoin’s utility.”
Bitcoin has been in a bull trend throughout 2021. The most popular virtual currency started moving higher after the COVID-19 crisis hit the markets in March 2020. Since that moment, BTC has been in a bull trend or consolidation period.
Bloomberg: Bitcoin Is The Best Inflation Hedge
Bloomberg recently found and noted that Bitcoin has achieved 99.996% deflation over the past ten years. What cost one Bitcoin in 2011 now costs around 0.004% of a Bitcoin. Meanwhile, the CPI has risen 28% in dollars during that time.
Just days ago, Bitcoin surged to a new all-time following the release of US inflation numbers for October. Since last year, the CPI has risen by 6.2% across the country. What’s more, when using the 1980’s measure for CPI, inflation has increased by closer to 15%.
Bloomberg’s economists estimate that roughly half of Bitcoin’s recent price surge has been driven by inflation fears. The other half is due to momentum trading:
“Our model shows that for Bitcoin, the importance of inflation and hedging against uncertainty become more important drivers over time, accounting for 50% of price moves in the latest cycle relative to 20% in 2017."
Public recognition of Bitcoin as an inflation hedge is growing strong. Last month, billionaire hedge fund manager Paul Tudor Jones called the asset a better hedge than gold.
However, Bloomberg acknowledged that Bitcoin has yet to gain enough trust to be counted as a guaranteed inflation hedge. Wilfred Daye, head of Securitize Capital, still says gold is a better alternative, even though Bitcoin is “a new sexy concept."
Bitcoin Price Is Expected To Reach These Levels
Looking at the Bitcoin price chart, we see that BTC has been quite bearish during the current week. If the current sentiment persists, we could see BTC drop to $60,000.