Technical overview – Bitcoin Under Pressure: Key Support Zone in Focus

• Bearish Pressure: Bitcoin has faced strong selling pressure after failing to break the $72,000 resistance in early June. Its performance for the month is down 9%, with over a 5% drop last week, marking the second consecutive weekly decline. This downturn coincides with Mt. Gox’s trustee announcing Bitcoin payments to creditors in July, fuelling bearish sentiment due to anticipated selloffs.

• Sentiment and ETFs: The Crypto Fear and Greed Index has dropped to a “Neutral” reading of 46, the lowest in eight months. Additionally, Bitcoin funds have seen significant outflows over the past two weeks, the highest levels since Bitcoin ETFs were approved.

• Sideways Consolidation: Bitcoin continues to remain contained within a medium-term sideways range as it tests the liquidity at both boundaries, preparing for its next directional move. The break below $66,500 has shifted momentum to bearish, with attention now on the key support levels. Despite losing nearly 15% over the last two weeks, Bitcoin remains within the $60,000 to $70,000 range it has traded in since March.

• Key Support Levels: Traders are closely monitoring the psychological support at $60,000, the 200-day EMA upper boundary at $59,000, and the 4-month low at $56,500, which, if breached, could indicate further downside and initiate a long-term correction in the market.

• Market Outlook: Despite the bearish momentum, long-term support remains intact if Bitcoin finds strong support around the $60,000-$58,000 zone and shows signs of reversal. However, a further break below $58,000 could accelerate bearish pressure, potentially leading to a drop below $56,500, triggering a long-term correction. Bullish traders are monitoring the zone between $60,000 and $56,500 for any bullish signs that could indicate a recovery within the recent range, and a continuation of the sideways pattern.

BTC Daily Chart

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