The recent technical analysis of Bitcoin (BTC) reveals a significant development, as the price has confirmed a breach below the critical $69,000 support level. This decline indicates that bearish sentiment has taken over the market, prompting questions about the potential for further drops to $65,000 and possibly $60,000.
Analyzing the 4-hour chart, it is evident that BTC is rolling over once more. A daily close beneath the key support level could signal the beginning of the next downward trend. By applying Fibonacci retracement levels, it is noted that the 0.618 level around $65,000 aligns with notable horizontal support. Should the price drop further, the 0.786 Fibonacci level correlates with previous 4-hour candle bottoms, potentially serving as another support point. Both levels could provide opportunities for a bounce, with $60,000 also posing as a possible double bottom.
The current momentum suggests that even if Bitcoin manages to reclaim the $69,000 level, which has now turned into resistance, it might only serve to confirm the breakdown before a more substantial price drop occurs. However, there is a glimmer of hope for bulls as the Stochastic RSI indicator lines sit at the bottom, indicating that a bounce may be imminent from current levels.
Looking deeper into the charts, the formation of a falling wedge reveals that the upper trendline is currently acting as resistance while the lower trendline could provide support. The $65,000 level is particularly noteworthy since it acted as resistance during the initial double tops of the 2021 bull market. Observers remain skeptical about the resilience of this support, given the recent lack of support at the previous high of $69,000.
Despite these challenges, there are reasons for cautious optimism. The weekly chart still presents an opportunity for a bullish reversal, as there is time left for the weekly candle to close above the critical $69,000 support. Higher time frames can often negate the effects seen in shorter time frames. Both the Stochastic RSI and the Relative Strength Index (RSI) are nearing oversold levels, suggesting a potential rebound could be on the horizon.
With Bitcoin also showing signs of potential bottoms against various assets, including gold and silver, the market might just be poised for a rally. Although there may be further declines in the short term, the overall sentiment suggests that Bitcoin”s resurgence could be closer than many anticipate.
In summary, the breach below $69,000 has placed bears firmly in the driver”s seat, with $65,000 and $60,000 as key levels to watch. The dynamics of the market will need careful observation as traders assess whether the bulls can regain momentum.
