After dawning low, Bitcoin (BTC) loses even more strength this Tuesday afternoon (30), extends losses and drops below US$60,000. At around 5 pm, it was quoted at US$59,600, heading towards losses of 16% in April, the worst monthly performance since June 2022, when the cryptocurrency fell more than 37%.
And, according to a technical analyst, May could reserve even more falls for the digital asset.
For Fernando Pereira, graphic analyst at crypto brokerage Bitget, the level of R$ 60 thousand represents strong support (zone with high buying interest) for Bitcoin, but there are signs that show that the zone may not resist, opening the way for a more sudden dive. It is worth remembering that this is the third time that BTC has reached the US$59,000 region this month alone.
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According to the analyst, the clue that points to weakness in the cryptocurrency is in an indicator called long short ratiowhich measures the relationship between long and short positions in the asset.
“When we look at the long short ratio and we see that 75% of the market has open purchase futures contracts, this is a very strong indicator that all these contracts must become liquid for the price to break this support and seek lower targets”, he explains.
According to Pereira, if the US$60,000 level really does not hold, Bitcoin should seek levels of “US$54,800 initially and US$52,000 in a second moment”.
