BTC falls below $61,000, this is the next target

Bitcoin’s rejection at $66,000 and the break below the 200-day moving average suggest that bearish sentiment is gaining strength.

If the price fails to reach the $60,000 support, the likelihood of a mid-term decline towards the $52,000-$55,000 area increases.

Technical Analysis

By Shayan

The daily chart

On the daily chart, Bitcoin’s rise above the 100-day and 200-day moving averages briefly revived bullish sentiment.

However, upon reaching the $66,000 resistance zone, substantial selling pressure emerged, halting the uptrend. This area has historically served as robust multi-month resistance, and Bitcoin’s failure to break above it led to a major rejection.

Bitcoin is currently trading below the 200-day moving average of $63.4K and resting on the 100-day moving average of around $61K. This area is critical as the $60,000 support region is both psychological and substantial.

If Bitcoin breaks below this barrier, a mid-term decline towards the $52,000-$55,000 range is likely. This area represents the next major support level and could be the target if the bearish momentum continues.

Source: TradingView The 4-hour chart

On the 4-hour chart, Bitcoin’s rise met strong resistance at the Fibonacci OTE 0.618-0.786 retracement zone, which corresponds to the $66,000 price level.

This selling pressure led to a sharp rejection, leading to a 10% decline. The presence of sellers near the $66,000 level indicates that it remains a formidable barrier, acting as a key resistance level in the broader market outlook.

As a result, Bitcoin is expected to enter a short-term consolidation phase, and the psychological support of $60,000 will be the next crucial level to watch. If Bitcoin holds above this support, it may consolidate before attempting another upward move. However, if the $60,000 support is breached, a deeper pullback towards the $55,000 level becomes highly likely, marking a potential switch to a sustained bearish trend.

Source: TradingView chain analysis

By Shayan

The Bitcoin Coinbase Premium Index is a key indicator that helps gauge whether US institutional investors or large traders are actively buying or selling BTC on Coinbase compared to other exchanges. The index is currently showing negative values, indicating bearish sentiment in the market, with significant selling pressure or a pause in accumulation by large investors.

In the short term, this negative premium reflects a lack of demand from US-based institutional investors, which is contributing to bearish market sentiment. However, this period of low sentiment for long-term holders can often present attractive buying opportunities. From a broader perspective, while the market is still moving within a downtrend channel, both the build-up and selling pressure appear to be easing.

This suggests a period of market indecision where neither the bulls nor the bears have a firm grip on the direction of price action. As a result, this is not an ideal time for short-term trading, as the lack of a clear trend introduces greater risk.

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