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<p>The post <a href="https://coinpedia.org/price-analysis/btc-price-drops-under-57k-why-is-bitcoin-price-down-today/" rel="noopener noreferrer nofollow">BTC Price Drops Under $57K: Why Is Bitcoin Price Down Today?</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>The crypto market is down 4.82% in 24 hours and drops below the $2 trillion market cap, with the BTC price below $57,000. A significant loss leads to a death cross event in the crypto total market cap chart between the 50 and 200-day EMA.&nbsp;</p>
<p>With the next support at the $1.87 trillion mark, the daily RSI reveals a minor bullish divergence, projecting a potential bounce back. Fueling the market crash, the BTC price dropped by 2.77% last night and is currently down 1.73% from its opening price of $57,506.&nbsp;&nbsp;</p>
<h2 class="wp-block-heading" id="h-btc-price-performance">BTC Price Performance</h2>
<p>Over the last week, the BTC price dropped by 10.82%, undermining the 10% recovery in the prior week. With the bearish engulfing candle, the downtrend is expected to continue this week as it has dropped by 1.42%.&nbsp;</p>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc2pGTqt56Ud6cuxeotfnCoA6lktMYumR3WUMY_H_zYktyKDWpe7ir6hQmY47p9GrrNYBksabM3RDA3HmHaTiMxgQVNDi6aCbBLtXvKC95WWp4xyfQe8ys8mZcmq8I7Us6WCe8SbaMcVSXDQl6Y02Exf_12?key=fScbVTEnSrfzPvVzR8qzLA" alt="BTC Price Chart">
</figure>
<p><a href="https://www.tradingview.com/x/g7d8VERE/" rel="noopener noreferrer nofollow">Tradingview</a></p>
<p>In the 4-hour chart, the BTC price action reveals a declining support trendline action and a lower price rejection in the recent 4-hour candle. Furthermore, it takes support from the 23.60% Fibonacci level at $55,650.&nbsp;</p>
<p>Currently, the BTC price is at $56,503, and the support level of $55,852 is tested at a lower price rejection. However, the bearish breakdown of $57,000 undermines the crucial demand zone. Further, a falling channel pattern is visible with the 50-EMA in the 4-hour chart acting as a dynamic resistance.&nbsp;</p>
<p>The daily 4-hour RSI line reveals a minor bullish divergence as the RSI line hovers over the oversold boundary.</p>
<h2 class="wp-block-heading" id="h-the-bitcoin-etfs-crash-nbsp">The Bitcoin ETFs Crash&nbsp;</h2>
<p>On September 3rd, the <a href="https://farside.co.uk/btc/" rel="noopener noreferrer nofollow">Bitcoin ETF</a> flows faced a massive surge in the outflows, resulting in a BTC price crash.&nbsp;</p>
<p>In the $287.8 million of total outflows, Fidelity contributed $162.3 million, GBTC $50.4 million, Ark $33.6 million, and Bitwise $25 million. Blackrock’s IBIT and Wtree’s BTCW had a net zero flow amid the bear market.&nbsp;</p>
<h2 class="wp-block-heading" id="h-bitcoin-derivatives-and-sentiments-nbsp">Bitcoin Derivatives and Sentiments&nbsp;</h2>
<p>With the Fear and Greed Index at 27, the market is dominated by fear. Further, the BTC dominance is down by 0.14%.</p>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd7SoaXPWpEmk5nnQIK7GuZh4iuhvM0TW1xtzVBs_PoBOKmJhqDQolOeMD_TQ6xWKFPvD-GgrZXePWjigy1EtWU8SRbpxORYNDUg709IpEQYOnphO-uD0wq6jKNXXEVeTnEAge19o_wiPCEdgU6zAIwroxc?key=fScbVTEnSrfzPvVzR8qzLA" alt="Coinglass Market Data  ">
</figure>
<p>In the derivatives market, the Open Interest of Bitcoin is down to $51.46B, a 4.26% drop in 24 hours. Further, the liquidations have increased by 160%, recording a $195M wipeout.&nbsp;</p>
<p>Hence, the rising bearish signals in the derivatives market and the declining Fear and Greed Index puts a sell sign. However, recovery signals like top traders’ BTC long/short ratio over Binance and OKX exchanges reveal underlying optimism.&nbsp;</p>
<h2 class="wp-block-heading" id="h-will-btc-price-hit-50k">Will BTC Price Hit $50K?</h2>
<p>The increasing supply and deteriorating market sentiments warn of a bearish continuation. Regarding the 23.60% level breakdown, the next support levels are present at $54,000 and $51,335.&nbsp;</p>
<p>On the positive side, a minor recovery could retest the broken $57,000 zone near the $59,000 mark in case of an extended recovery. Concerned about how the BTC price will conclude in the year 2024? Our <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin (BTC) Price Prediction</a> addresses this and more!</p>

BTC Price Drops Under $57K: Why Is Bitcoin Price Down Today?

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