BTC failed to break through the critical $66,000 level, which could have propelled it toward the $70,000 milestone. Instead, Bitcoin’s price plummeted below $60,000, currently trading at around $58,000, marking a significant drop of approximately 5% in the past 24 hours.
Why did Bitcoin Price Crash?
Bitcoin’s recent attempt to break the $66,000 resistance level ended in failure, halting what could have been a significant rally toward the $70,000 mark. This resistance level proved too strong for BTC, leading to a sharp reversal in price. The inability to clear $66K has now shifted the market’s focus to lower support levels as Bitcoin struggles to regain its footing.
BTC Price Analysis: Crash Below $60K
Following the failed breakout attempt, Bitcoin’s price crashed below the psychological $60,000 level, a crucial area that had previously provided support. Currently trading around $58,000, Bitcoin has seen a rapid decline of about 5% in just the past 24 hours. This sharp drop has heightened concerns among investors and traders, prompting a reassessment of Bitcoin’s near-term prospects.
BTC/USD 2-hours chart - TradingView
Why did Cryptos Crash?
Bitcoin’s downturn has not been isolated; the entire cryptocurrency market has followed suit, with major altcoins and tokens experiencing declines as well. The broader market crash, exceeding 4%, underscores Bitcoin’s influence on the overall crypto space. As Bitcoin continues to trend downward, the rest of the market is likely to remain under pressure, further reinforcing the current bearish sentiment.
Top cryptos by market cap - coinmarketcap
Bitcoin Price Prediction: Reach Support at $56.7K, With Potential Rebound
Looking ahead, Bitcoin is expected to continue its decline toward the key support level at $56,700. This level is seen as a critical juncture where a potential rebound could occur, offering a chance for BTC to recover some of its recent losses. A bounce from this support could help stabilize Bitcoin and possibly set the stage for another attempt to break higher resistance levels.
BTC/USD 4-hours chart - TradingView
Risk of Further Decline to $52K If Support Fails
If the $56,700 support level fails to hold, Bitcoin could face an even steeper decline, with the next support area around $52,000. The recent break below the uptrend line has introduced a more bearish outlook for Bitcoin, suggesting that further downside could be in store for the coming weeks. As the market adjusts to this new reality, investors should be prepared for potential continued volatility.
