Bitcoin Could See New Drop To $60,000 Despite Bounce – Here’s The Level To Defend

Overview

The cryptocurrency market is currently experiencing a recovery following a recent correction, with Bitcoin (BTC) attempting to reclaim a significant price zone. Despite a bounce in price, analysts are raising concerns that Bitcoin may not have reached its bottom, indicating a potential retest of recent lows.

Current Situation

Bitcoin has been moving sideways as it strives to establish a crucial price area as support. After hitting a two-year low of $60,000, Bitcoin has managed to bounce back approximately 17.5%, trading between $68,000 and $72,000 in recent days. However, it has struggled to reclaim the upper end of this short-term price range, leading to uncertainty regarding its next price movement.

Notably, one analyst pointed out that Bitcoin achieved a “strong weekly close” above the 200-week Exponential Moving Average (EMA). This is significant because previous corrections have often seen price wicks filled in the following week. The analyst referenced prior corrections in late February and early October, suggesting that Bitcoin may retest the $60,000 area again, where the 200-week Moving Average (MA) is also situated.

Another market observer highlighted the importance of the $68,000 support level, which coincides with the EMA200. If Bitcoin fails to maintain this level, it could be at risk of a deeper correction, potentially dropping below its recent lows.

Additionally, another analyst indicated that Bitcoin’s bottom may not yet be in, citing historical patterns where Bitcoin has typically bottomed around a specific pricing band. According to their analysis, this level currently sits at a significant figure, which adds to the concern for future price movements.

Market Analysis

Another market watcher pointed out a macro descending triangle pattern that Bitcoin has been forming since mid-2024. They suggested that any potential bounce in the price could be a “lesser relief rally” compared to previous advances. It was noted that when Bitcoin breaks down from macro triangles, it often reacts from the 50-Month EMA, usually followed by a downside deviation below this level.

The analyst also raised concerns that Bitcoin has historically struggled to revisit the base of the macro triangle after breakdowns. This implies that any upcoming relief rally may fall short of previous highs. If Bitcoin can establish support above the $71,000 area, where there was a breakout during post-halving accumulation, it could aim for a move into the mid-$70,000 range. However, if it fails to reclaim the upper zone of its current range as support, it may instead confirm resistance, leading to a consolidation around its post-halving range.

From author

The current dynamics in Bitcoin’s price movement highlight the ongoing uncertainty in the cryptocurrency market. While there are signs of recovery, the potential for further corrections looms large. Analysts are closely monitoring key support levels and historical patterns to gauge where Bitcoin may head next. The market appears to be at a critical juncture, with the possibility of significant volatility ahead.

Impact on the crypto market

• Bitcoin’s recent bounce raises questions about its sustainability and future price direction.
• Analysts are closely watching key support levels, particularly the $68,000 mark, for signs of further movements.
• Historical patterns suggest that Bitcoin may not have reached its bottom, indicating potential risk for deeper corrections.
• The formation of a macro descending triangle could limit Bitcoin’s upward potential in the short term.
• The ongoing uncertainty may affect market sentiment and trading strategies among investors and traders.