This sharp decline made Bitcoin to lose significant support levels: the 50-day exponential moving average (EMA) at $64,300 and the 100-day EMA at $63,670. Breaking through the support levels around the $63,000-$64,000 range is considered very risky for Bitcoin and the market in the near future.
According to trader community on X, most believe that Bitcoin may undergo a deeper correction and could potentially return to the recent low around the $53,000-$55,000 range.
On the weekly, Bitcoin have a morning star pattern, a notable bearish pattern in technical analysis. The MACD Histogram chart is also below the Zero line, reinforcing the bearish signal for the next week.
The overall market, including the top 100 altcoins, is experiencing a sharp decline, with most tokens showing double-digit losses. The altcoin dropping the most today is FLOW, down 15%, followed by BRETT at -13.4%, WIF at -12.4%, BSV at -12.3%, HNT at -12%, and BEAM at -12%.
Many investors have “cashed out” currently and now they are waiting for clearer signals from the market.