• When the price of Bitcoin dropped to $62,410, there were about $570 million in liquidations.
• The shoulders-to-head pattern might push Bitcoin down 12% to the weekly imbalance of $59,005.
• The technical formation would be nullified by a break and closing above the $69,000 neckline.

The price of bitcoin (BTC) dropped to trade in the $62,000 level, allowing bulls who entered the market later to purchase BTC at a discount of 15% to its peak. Even while the countdown to the halving continues, the impacts of the dump extended throughout the market, resulting in millions of dollars in liquidations.

Late risers may still be able to get Bitcoin at a lower price.

On Tuesday, the price of bitcoin fell to an intraday low of $62,410, sparking a more significant market meltdown. Almost $570 million worth of cryptocurrency liquidations resulted from the dip, including $458 million of long holdings and $111 million of short positions.

Of this, about $45 million was in short positions, while about $136 million was made up of long Bitcoin positions. It happens when the clock is running down to the anticipated 30-day Bitcoin halving.

Even though the decline is significant, bulls view it as an excellent opportunity to purchase and a necessary corrective before the halving. If history is any guide, the next bull market may be sparked by the Bitcoin halving. This has happened in prior cycles.

According to other sources, MicroStrategy added 9,245 BTC tokens, valued at around $623 million, to its Bitcoin bucket between March 10 and March 18. The average cost to acquire the tokens was $67,382. The business intelligence company currently owns 214,246 BTC, valued at $13.6 billion, after making this large purchase for $7.53 billion. $35,160 is the average purchasing price overall.

Notably, extra cash and the income from convertible notes were used to finance the transactions.

Outlook for the price of bitcoin before the halving

The price motion of Bitcoin was characterized by a continuous rise that culminated at $73,777 and then a sequence of declining highs and lows. The result is a pattern of the head and shoulders. This technical pattern indicates a negative trend that is about to begin.

The pattern consists of three consecutive price tops, or two shoulders and a head. The two other tops, which are higher on both sides, are the shoulders, and the head is the middle top, which is at the highest level. The swing lows of the three tops are joined at the neckline.

Once the price breaks below this neckline, the pattern is finished, and the target is predicted by superimposing the length from the neckline to the head on the anticipated breakout point southward.

If this pattern holds, the price of bitcoin might fall by 12% to the weekly imbalance or the Fair Value Gap (FVG), which ranges from $52,985 to $59,005. Risk-averse investors can purchase at this time. The downtrend would be confirmed if it broke and closed below its midline at $55,942.

This prognosis is supported by the Relative Strength Index (RSI), which is declining to indicate declining momentum. Inspired by the recent lack of momentum in the price of Bitcoin, the Awesome Oscillator (AO) histogram bars are likewise trending towards the mean level, indicating that profit-taking is still underway.

However, if bulls are to have their way and they materialize, the price of Bitcoin may rise again above the neckline. The increases push Bitcoin above the $69,000 mark in a very optimistic scenario, which refutes the opposing theory.

If the previously indicated resistance turns into support, it will incentivize bulls to drive the price of Bitcoin back up to $73,777 or even higher. This would represent an increase of over 13% over the present levels.