Bitcoin Bounces To $58K, Why Bears Could Spill More Blood

After one of its most bloody days in 2021, Bitcoin is trying to reclaim critical support above $58,000. A daily close north of this target could push BTC’s price back to the $60,000, but still a long way from a confirmed recovery. Related Reading | Shakeout Or Top? Here’s What Bitcoin SOPR Says About It As of press time, Bitcoin trades at $58,137 with sideways movement in the daily chart. Bitcoin started its downward trend immediately after scoring a new-all time high at $69,000. The benchmark crypto lost support at $60,000 after a relentless battle between bulls and bears and took another leg down finding support at $55,600. As many experts claimed, the market was over-leverage and open for a liquidation cascade, as it happened in May and July this year. Since then, the price of Bitcoin has dropped around 17.26% from its ATH. In turn, the general sentiment in the market has taken a dip, but still remains fairly optimistic. Funding rates across crypto exchange platform turned neutral suggesting that short-term traders have been shakeout, at some extent. On average, Bitcoin has experience 27%, 24%, and 54% correction from its all-time high, according to data from UTXO Management. This metric, combine with the neutral funding rates, suggest BTC could see more downside price action. In the short term, Bitcoin has support on $55,000 with seemingly the road clear for a bounce into $60,000. The sustainability of this upward mov...