“The bottom is near”: Bitcoin tests support at $60,000

Overnight optimism about the launch of cryptocurrency ETFs in Hong Kong quickly dried up, and Bitcoin again went looking for the bottom.

According to the cryptocurrency screener Cryptovizor, which determines the price of BTC/USD based on the results of trading on spot exchanges, at 3 a.m. (MSK) the asset rose to $64,800, but then began to fall. At the time of writing, the Bitcoin rate was just above $60,500.

12 hour BTC/USD chart. Source: Cryptovizor

These adventures of the main cryptocurrency led to the fact that the liquidation of long positions in the market reached $230 million, according to CoinGlass monitoring.

The bearish sentiment appears to be due to trading volumes for new ETFs in Hong Kong being significantly lower than expected.. Against this background, the United States has seen an outflow of funds from Bitcoin ETFs for 4 days in a row.

The market situation was analyzed by Yann Allemann and Jan Happel, co-founders of the analytical company Glassnode. They noted a significant correction in Bitcoin, but drew attention to “signs of recovery”. In their view, the $60,000 level is a solid bottom for the current consolidation range, which tops out at $74,000.

Bullish sentiment continues as the market favors a buy-on-the-dip approach.

However, analysts admit that the loss of support in the $60,000 area could lead to a collapse in the Bitcoin rate to $52,000.

In contrast, the head and founder of MN Trading, Michael van de Poppe, does not allow such a significant price drop. He wrote on social media X:

Many arguments in favor of a potential Bitcoin bottom: FOMC, unemployment data, Changpeng Zhao trial. I think the bottom is close, as is the growth of altcoins.

Bitcoin 1 day chart. Analyst: Michael van de Poppe

The point is that the former head of Binance will be sentenced in the United States tonight, and on May 1 there will be a meeting of the Federal Open Market Committee (FOMC), at which a decision on the key rate will be made. According to the Chicago Mercantile Exchange's Fedwatch tool, the likelihood of a rate cut is less than 0.5%.