The cryptocurrency market is facing a bearish trend as Bitcoin (BTC), the largest cryptocurrency with a market capitalization of $1.28 trillion, has breached a crucial support level of $64,500. This noteworthy breakdown has been highlighted by IntoTheBlock, a prominent on-chain analytics firm. Recently, they made a post on X, which suggests that the next support levels for BTC are expected to be between $61,900 and $63,800.
Bitcoin next support level, Will BTC dump incoming?
Over the past 24 hours, Bitcoin has experienced a price drop of over 3.5%, resulting in nearly 60,000 traders being liquidated, with total liquidations reaching $139.28 million according to Coinglass data. Moreover, Bitcoin’s total open interest (OI) has also decreased by 2%, indicating waning interest from investors and traders amidst the prevailing bearish sentiment.
As of the latest update, Bitcoin is trading near $63,990, marking a 3.5% decline in the past 24 hours. While the market has been consolidating in recent days, the breakdown of support has led to a 4.3% decrease in BTC’s value over the past week. Furthermore, over the last 30 days, Bitcoin has lost 10% of its value due to sustained bearish sentiment.
This continuous decline in Bitcoin’s price has heightened fear in the market. If BTC further falls to the $61,900 level, approximately $366 million worth of long-leverage positions could be liquidated, as per Coinglass data. As of now, traders are losing interest in the long side, whereas bears are continuously shorting BTC.
Source: Coinglass Bitcoin technical analysis and key levels
Expert technical analysis indicates that BTC is bearish on a longer time horizon. However, in a 4-hour time frame, it is moving within a bearish channel pattern and below the 50 and 200 EMA (Exponential Moving Average) line.
Source: Coinglass
After the recent breakdown of important support levels, the next support that BTC is near $61,900, but there is also a possibility that it will not directly move to that level. In a short time frame, we may see a slight upside move until $65,500, which is a resistance of the channel pattern before it potentially reaches to $61,900 level.
As of now, fear in the market has escalated to the next level, with traders avoiding the current market situation. At the same time, crypto whales are seizing this situation as an opportunity and adding more BTC and other altcoins to their holdings.