CandleFocus

Bitcoin Weekly Forecast: $50,000 on the horizon if it breaks below key support level

Author: Content Editor
Bitcoin (BTC) is testing a key support level at $56,000, and if it drops below it, a continued downtrend is likely. US spot Bitcoin ETFs have experienced significant outflows, indicating a negative sentiment towards Bitcoin. Institutional custody company Ceffu has deposited BTC into Binance, suggesting institutions may be selling their holdings. A whale also deposited BTC on Binance. The US economy added fewer jobs than expected, which could lead to the US Federal Reserve cutting interest rates, benefiting cryptocurrencies. However, Bitcoin's price failed to rebound significantly after the news. CryptoQuant's Bitcoin Coinbase Premium Index shows decreasing interest from whales, while Coinglass's long-to-short ratio indicates traders anticipate the price to fall. Daily Active Addresses for Bitcoin have been declining, indicating lower demand for the network. Bitcoin was rejected after retesting its price retracement level, and if it closes below the $56,022 support, it could decline further. Momentum indicators suggest weak momentum and a continuation of the downward trend. However, if Bitcoin breaks above resistance levels, the bearish thesis will be invalidated, and the price could see a positive move.

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