Bitcoin's price has been declining steadily since its cycle highs, prompting analysts to revisit the potential for a significant drop in value. The cryptocurrency is currently testing a major support area near $60,000, which, if breached, could lead to further decline towards the $48,700 or $40,000-$50,000 areas.
The weekly chart shows Bitcoin breaking below a major ascending trendline that supported the market throughout much of the bull cycle. This breakdown has been accompanied by a bearish divergence in the Relative Strength Index (RSI), which suggests a prolonged correction phase may be underway.