Bitcoin has given up all of its gains from last Saturday on Wednesday morning, with prices falling below the key support level of $60,000. Although it briefly hit a high of more than $64,000 earlier, it then fell sharply to a low of $59,900, a drop of more than 3% in just 24 hours, setting a new low since early March.
Current Trading Dynamics
Currently on the Binance exchange, the most popular Bitcoin trading pair (BTC-USDT) shows a large number of buy orders below $60,000, and its volume even exceeds the sell orders, showing that the market has a strong willingness to buy at low prices, which may help prevent further price declines.
Despite this, Bitcoin has fallen more than 15% from its recent high, while other non-mainstream cryptocurrencies have also suffered heavy losses, with declines ranging from 40% to 50%. According to Glassnode data analysis, this volatile trend reflects the common characteristics of previous bull market adjustments. However, even in the obvious buying range, major investors seem to be cautious about bottom-fishing.
In terms of technical analysis and external factors, the Wyckoff method, a popular technical analysis tool, also indicates a possible further downward trend. Recently, Stockmoney Lizards pointed out on Twitter that Bitcoin is currently in the "weakness signs" stage of the Wyckoff distribution model, which is usually manifested as weakening demand, which may lead to further price declines.
External economic factors, including the high interest rate policy maintained by the Federal Reserve and the tensions caused by the escalating conflict between Iran and Israel, further exacerbated the market's difficulties, making investors more risk-averse.
Since the outbreak of the Iran-Israel conflict on April 12, Bitcoin ETFs have seen nearly $150 million in capital withdrawals, a clear reflection of the broad selling pressure on risky assets.
From a technical perspective, Bitcoin price has slipped from the $70,000 resistance level and is retesting the $60,000 support area. If this support level is lost, the price may quickly fall to the $55,000 level. On the contrary, if Bitcoin can break through $68,000 again, the possibility of reaching new highs will increase significantly. However, it should be noted that the current relative strength index (RSI) is below 50%, which suggests that the risk of a market crash is still high, which may have serious consequences for the market if it occurs.
