Crypto Market Today: Bitcoin Falls Below $60K Again, Is This the Start of a Downtrend?

Bitcoin has been keeping everyone on edge lately with its dramatic price swings, resembling a rollercoaster ride. The cryptocurrency’s value has seen sharp rises, offering moments of excitement, only to dip back down to its starting point. Recently, Bitcoin briefly touched the $64,000 mark, sparking renewed interest among investors. However, it has since fallen below $60,000, dropping over four percent.

While analysts across the industry are making predictions, the hope of reaching new all-time highs above $75,000 seems distant for now, as the market lacks a clear upward trend. According to analyst Josh of Crypto World, Bitcoin is currently in a larger bearish trend, as indicated by the Super Trend indicator on the 4-day and 2-day timeframes.

Resistance:

The key resistance level is around $68,000, forming the upper boundary of a descending broadening wedge pattern. Another resistance level is approximately $64,500, where Bitcoin has faced recent rejections. Further resistance is seen at around $62,900, which was a previous line of resistance and is now acting as resistance again after a recent breakdown.

Support:

Strong support is identified between $56,000 and $57,000. Additional support levels are at $58,000 and between $60,000 to $61,000. If Bitcoin breaks below the $56,000-$57,000 support range, it could lead to a deeper retracement, potentially back to previous lows around $53,000. Continued bearish momentum could push the price towards $50,000 or lower, depending on market conditions.

Market Sentiment and Liquidation:

The Bitcoin liquidation heat map shows a recent increase in downside liquidity, indicating significant liquidations as the price broke below key levels. Despite this, the market’s overall sentiment remains bearish, with many traders heavily shorting crypto, as reflected in the extremely negative funding rates.

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