Bitcoin (BTC) intensified its downtrend this Wednesday (2), losing important support levels in the process.

Currently trading near the $61,000 level, BTC has not been immune to the rise in Middle East tensions, which have caused a wave of panic in the crypto market.

What to expect now?

Will Bitcoin continue to fall?

Bitcoin fell below a rising parallel channel last Sunday (29). It is worth noting that the pattern had been in place since September 6. Although the Relative Strength Index (RSI) on the 2-hour chart indicated that a bottom was near, Iran's attack on Israel intensified the downward momentum in the last few hours.

As a result, the indicator fell below 20, which shows a possible exhaustion of the selling force, given that the asset is oversold.

With this, it is possible that BTC has reached a top and partially resumed its upward movement. In this case, its price could rise to test the support line of the rising channel as a new resistance. Currently, the line is at $65.5K.

Bitcoin (BTC) Chart on TradingView

However, there is no guarantee that this will happen. The last time the RSI hit this low, for example, its price continued to fall for another 10 days. As such, it is possible that Bitcoin will continue to fall towards its next support levels. Specifically, at $59,200 and $57,500.

This scenario will be especially likely with an escalation of conflicts in the Middle East, as highlighted by Fernando Pereira, an analyst at Bitget: “there may be an escape of investors to the dollar and more aggressive falls in all markets, including the crypto market.”

The article Bitcoin (BTC) Price Prediction: What to Expect Today? was first seen on BeInCrypto.