Bitcoin (BTC) has shown signs of volatility, significantly dropping to below $60,500 in early trading hours. The leading cryptocurrency trades around $60,902, marking a more than 2% decline in the last 24 hours. This recent drop impacts Bitcoin and has a cascading effect on the broader cryptocurrency market, including Ethereum, which has struggled to maintain the $3,000 mark.
BTC Trades Near Key Support of $60k as Bears Mount Pressure
Bitcoin’s immediate support is found near the $60,500 mark where it has formed recent bottoms early in the trading hours. This level is very important as if breached; it could intensify selling pressure thereby making Bitcoin explore lower support zones. Conversely, resistance may first be felt at $64k just before the recent collapse.
The daily RSI shows signs of struggle as it hovers below the midline at around 41.91 indicating bearish momentum. MACD reinforces this view with the MACD line (blue) being under the signal line (orange) stating there might be a further downside risk.
Michael van de Poppe, who is recognized in cryptocurrency analysis circles has been closely watching these market dynamics. He hints that reversals could be imminent which means that Bitcoin may bounce back given some conditions are met. For this to happen, there would need to be stabilizing and subsequent bullish moves from hereon and after touching down on major support at $60500 with a reversal back towards higher resistance areas..
Bitcoin Dominance and Altcoin Impact
According to Benjamin Cowen’s analysis, BTC dominance is on its way higher targeting about 60%. This increased dominance usually correlates with reduced volatility and potential negative effects for altcoins such as ETH whose value fell below three thousand dollars recently. Perhaps an increasing focus on bitcoin comes from safety perceptions or speculative switching away from alternative coins which have traditionally provided larger levels of volatility.
Fed rate-cuts speculations aiming at a soft landing’ for the economy add another layer of complexity to the equation. Whether such macroeconomic issues support Bitcoin as a ‘haven’ or result in wider sell-offs across risky assets including cryptocurrencies will depend on how traders interpret these possible moves.
The recent price action forms a crucial juncture for Bitcoin. The support level of around $60,500 must be held to prevent further declines. If Bitcoin can stabilize and reclaim levels above $61,000, it might regain momentum to test higher resistance near $62,000 and potentially higher. However, as highlighted by some analysts, a potential bull trap suggests that any recovery could be short-lived, with the risk of renewed selling pressure.
