Bitcoin Faces Critical Support Breakdown Amid $189.9 Million ETF Outflow: Analysts Weigh In

Bitcoin is currently facing significant market turbulence as it recently broke through a critical support level as highlighted by Crypto Rover, an analyst. In another X post, Crypto Rover shed light on the notable outflow of $189,900,000 from the Spot Bitcoin ETF, adding to the concerns. 

The price of Bitcoin at the press time stands at $66,139.08, reflecting a 1.20% decline over the past day. As further highlighted by Ali Martinez, a top analyst, to avoid a further potential correction to $61,100, Bitcoin needs to climb back above $66,254 swiftly.

Key support and resistance levels provide insights into Bitcoin’s market behavior. The $65,000 level has emerged as a strong support area. Bitcoin has rebounded multiple times when approaching or briefly falling below this mark. This level’s consistent defense suggests robust buying interest, preventing deeper declines.

Additionally, the $66,000 level has shown some support, acting as a minor buffer where buyers stabilize the price. However, it is not as crucial as the $65,000 support level. The chart highlights significant resistance at $66,970, where Bitcoin has faced selling pressure. Each attempt to surge past this level has been met with immediate sell-offs, indicating its significance as a resistance point.

Moreover, the $66,500 level has also been notable, with short-lived upward spikes suggesting active seller defense. This resistance, while less formidable than $66,970, still plays a significant role in short-term trading patterns.

The intraday chart displays a clear downward trend marked by lower highs and lower lows. Prominent red zones indicate significant price drops following each failed attempt to breach resistance levels. Despite the downward momentum, the price appears to stabilize around the $65,000 support. 

Analyzing market indicators, the 1-day RSI reads 62.72, indicating that Bitcoin is in a neutral position. The 1-day MACD trading below the signal line suggests potential downward pressure on the price in the short term. 

According to Ki Young Ju, Founder & CEO of CryptoQuant Bitcoin’s price typically stays above traders’ average entry price, around $47,000, in a bull market. Despite a 27% drop, it can still be considered a bull market.