Crypto: Bitcoin Bounces To $76k, But Onchain And Technical Data Signal...

Bitcoin’s rebound masks weak technicals and onchain signals that point to continued downside risk, with miners and exchange flows reinforcing the bearish trend.

Bitcoin (BTC) traded as high as $76,900 on Wednesday, up 4.5% above its 15-month low of $72,860, reached on Tuesday. However, there are increasing signs that Bitcoin’s price could experience a deeper correction over the following weeks or months.

Bitcoin confirms bearish technical patterns on multiple time frames, risking a deeper correction toward $60,000.

Bitcoin’s Puell Multiple could stay in the discount zone longer, indicating a continuation of the downtrend.

A surge in BTC inflows to Binance could provide bears with fuel for a deeper pullback.

The BTC/USD pair had confirmed a head-and-shoulders (H&S) pattern on its weekly chart, warning of a deeper correction ahead.

The price broke below the neckline of the H&S pattern at $82,000 on Saturday, to continue the downward trend with a measured target of $52,650.

Related: Next Bitcoin accumulation phase may hinge on credit stress timing: Data

Such a move would bring the total losses to 31% from the current level and the drawdown from the $126,000 all-time high to 58%.

Crypto analyst BitcoinHabebe said that Bitcoin’s drop toward the H&S pattern’s target at $60,000 was “obvious,” due to a myriad of macroeconomic headwinds.

Source: CoinTelegraph