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Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="" target="_self" text="null">BTC)</a> dropped below its critical 200-day EMA for the third time in August this week and below the psychological level of $60,000. 
Its recent correction from $65,000 to $58,000 has further opened the possibility of a potential swipe of the recent lows. 
So, how low can the price of Bitcoin go in the near term? 
<h2 id="strong-immediate-bounce-from-58k-btc-price-support-strong">Immediate bounce from $58K BTC price support</h2>
Bitcoin is currently above $60,000 at the time of writing, and if market volatility favors BTC in the next few days, there is a decent chance of an immediate recovery. The mid-term 4-hour chart, for example, shows BTC price forming higher highs (HHs) and higher lows (HLs). 
<figure>
 <img alt="How low can the Bitcoin price go?" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01919d9a-67d8-7cb1-825e-6dcdafea9163">
 <figcaption style="text-align: center;">
 BTC/USDT on the 4-hour chart. Source: TradingView
 </figcaption>
</figure>
It is also currently at the lower trendline of an ascending pattern without undergoing a bearish breakout. So essentially, if Bitcoin regains a position above $61,120 in rapid succession, it could continue to establish a higher high range above $65,000, renewing bullish momentum.
Data from CoinGlass also<a data-ct-non-breakable="null" href="https://www.coinglass.com/FundingRate" rel="null" target="null" text="null">&nbsp;indicates&nbsp;</a>that the open interest-weighted funding rate for Bitcoin is also net positive right now, which means there is still some bullish interest from the derivatives market. 
<figure>
 <img alt="How low can the Bitcoin price go?" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01919d95-639f-7435-ae79-bb299b242145">
 <figcaption style="text-align: center;">
 Bitcoin open-interest weighted funding rate. Source: Coinglass
 </figcaption>
</figure>
However, the possibility of an immediate recovery from $58,000 is questionable since the market is approaching September. Historically, this month has the lowest BTC return on investment (ROI) average in the past decade.
The bears will argue that this history will likely repeat since most investors know this and expect further drawdowns in the next few weeks. 
<h2 id="strong-liquidity-sweep-and-order-block-around-54k-strong">Liquidity sweep and order block around $54K</h2>
Losing $60,000 support might see a steady correction down to $54,000-$52,000, with BTC undergoing another liquidity sweep at $53,500.
<figure>
 <img alt="How low can the Bitcoin price go?" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01919daa-2f4e-74e9-bc35-857a55115b6c">
 <figcaption style="text-align: center;">
 BTC/USDT on 1-day chart. Source: TradingView
 </figcaption>
</figure>
When BTC dropped to $49,000 earlier this month, its daily close was just above $54,000, highlighting that the BTC order book liquidity was possibly flooded with market bids around this range. 
<figure>
 <img alt="How low can the Bitcoin price go?" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01919e6e-0a2c-73e3-aa49-dc35c18a8fac">
 <figcaption style="text-align: center;">
 Bitcoin orderbook liquidity delta chart. Source: Coinglass
 </figcaption>
</figure>
The above chart <a data-ct-non-breakable="null" href="https://www.coinglass.com/pro/depth-delta" rel="nofollow noopener" target="_blank" text="null">illustrates</a> strong buy orders of ~$100 million during the first week of August. 
Another reason for BTC’s market recovery is a long-term order block (blue box in the chart), which is in the same range as Bitcoin liquidity, around $54,000. 
Axel Adler, a Bitcoin researcher, also&nbsp;<a data-ct-non-breakable="null" href="https://x.com/AxelAdlerJr/status/1829035971486044537" rel="null" target="null" text="null">notes</a>&nbsp;that $54,700 is a key level, representing a 15% deviation from the short-term holders’ cost basis. 
This level is considered a moderate low-risk boundary, and bearish sentiment will likely increase if Bitcoin falls below $54,700.
<h2 id="strong-bitcoin-liquidity-sweep-at-49k-strong">Bitcoin liquidity sweep at $49K</h2>
A drop down to $49,000 for BTC would mean another 18% correction over the next few weeks.
On the weekly chart, the correction on Aug. 6 tested a long-term order block between $47,000 and $50,500. 
Upon a potential retest of this major order block, Bitcoin will also receive support from the 50-day and 100-day EMA levels.
<figure>
 <img alt="How low can the Bitcoin price go?" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01919dbc-90c1-7a78-8ce0-a8d46f8fd193">
 <figcaption style="text-align: center;">
 BTC/USDT on the weekly chart. Source: TradingView
 </figcaption>
</figure>
This price range is also supported by BTC volume. 
As illustrated, the number of addresses holding 2.33 million BTC is currently 6.39 million; the average BTC was bought around $44,000. 
<figure>
 <img alt="How low can the Bitcoin price go?" name="" src="https://s3.cointelegraph.com/uploads/2024-08/01919dc3-9f6f-7a3b-ac89-cded32b20dff">
 <figcaption style="text-align: center;">
 Bitcoin addresses holding BTC chart. Source: Intotheblock
 </figcaption>
</figure>
Hence, price levels above $45,000 offer strong historical support areas for Bitcoin, which should ideally be the last line of defense before Bitcoin undergoes a bullish recovery in Q4. 
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

How low can the Bitcoin price go?

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