Bitcoin (BTC) has recently encountered significant price fluctuations, with a potential downturn looming ahead. Over the past week, BTC saw a notable 8% decline, prompting discussions among traders and analysts about further possible drops.
Technical Signals Point Towards Lower Price Targets
Analysts are relying on various technical indicators to assess BTC's future trajectory. Mark Cullen, using the Elliott Wave method, predicts a potential drop to around $63,000. He highlighted BTC's recent movement away from weekend highs, signaling a probable continuation of the downward trend.
Analyst Insights on Key Support Levels
Matthew Hyland emphasized BTC/USD's current position above a crucial support level at $67,000. According to his analysis, maintaining this support is critical to preventing further declines. However, a breach below this level could pave the way for a decline towards approximately $64,700.
Moving Averages Reflecting Market Sentiment
Michael van de Poppe examined BTC's daily price action, noting significant movements relative to key moving averages. BTC recently lost support from its 50-day exponential moving average (EMA) at $67,011, with attention now turning to the 100-day EMA around $66,000. The 200-day EMA at $64,000 stands as the final support level against further short-term downside.
Market Liquidity and Investor Sentiment
Bitcoin liquidation heatmap. Source: Coinglass
Data from Coinglass underscores a notable accumulation of liquidity between $63,000 and $65,500 over the past month. This range suggests significant interest and potential support levels in case of further price drops.
As Bitcoin continues to navigate these turbulent market conditions, the focus remains on key technical levels and investor sentiment. Analysts' projections suggest caution, with potential scenarios indicating a decline towards $63,000 amidst current market uncertainties. Traders and investors alike are closely monitoring these developments to gauge BTC's next moves in the coming weeks.