Bitcoin (BTC) investors are closely eyeing key support levels and technical indicators to gauge the trajectory of the world’s largest digital asset. As per Titan of Crypto, an analyst, after failing to sustain above the crucial $61,300 mark, BTC closed its monthly candle below this level, sparking concerns among traders. However, while some anticipate a deeper correction, others remain optimistic about the long-term bullish outlook.
Technical analysis suggests that Bitcoin may experience a retracement to the $51,600 level, corresponding to the 38.2% Fibonacci retracement level. This correction, although substantial, is not uncommon during bull runs and could serve as a healthy consolidation phase. Mags, the analyst, highlighted the possibility of a drop to $57,500 as the bottom before experiencing a rapid rebound, according to further observations.
Nevertheless, the weekly chart paints a cautious picture as Bitcoin is currently trading below the weekly support zone of $60,000. If the price fails to reclaim this level, it could signal a fakeout, potentially leading to a deeper correction towards $40,000 or lower. Traders are closely monitoring price action within the crucial blue box region, as a decisive close below it could trigger further downside momentum.
Despite the recent downturn, several indicators hint at a possible bottom formation. Moustache, an analyst, highlights that the Relative Strength Index (RSI) is showing signs of improvement, suggesting that selling pressure may be nearing exhaustion. Additionally, Bitcoin is adhering to a trendline established since October 2023, indicating underlying support in the market.
Investors remain cautiously optimistic, citing global liquidity levels comparable to those observed during previous bull cycles. This sentiment is further bolstered by historical precedents where similar market conditions led to significant rallies across crypto assets. As Bitcoin’s price hovers around $57,702.01, traders are weighing potential buying opportunities against prevailing market risks.
