In a fresh dump, Bitcoin lost 8% today as it closed last week’s trading below a key level. This triggered a major price breakdown and is now looking super bearish on the daily chart while losing momentum.
The recent monthly buy near the $89k level generated some positive sentiment last week, but it later halted after failing to advance higher.
This led to a fake out as millions of dollars of short positions were liquidated on futures, leading to a bull trap. The price later dropped throughout the week and closed highly bearish after losing $80k.
Today marks its biggest loss ever since the rejection and is now looking strongly bearish as it dipped to $74.5k today, marking its lowest level in five months. A slight recovery from this level has brought trading back to $77.2k at the time of writing.
It currently aims to retest the $80k level that cracked during yesterday’s dump. We can expect more sell-offs as soon as the price retests this key level. This may come into play during the New York session.
The daily low is currently serving as support. If it holds, we can expect a brief break in the selling pressure. But from the look of things, Bitcoin will most likely test the $71k – $70k range before calming. Right now, the bulls are off the market.
BTC’s Key Levels To Watch
Source: Tradingview
Bitcoin just rejected the daily $74,500 low and now sits above $76,606. Losing these levels could drive the price lower to $73,620 and mainly the $70,578 support in the next dip.
Following a slight recovery from the daily low, it may retest the $81,135 resistance, along with the recently broken rising trendline. Resistance levels above this trendline are $85,800 and $88,765, where it initiated the current leg down.
Key Resistance Levels: $81,135, $85,800, $88,765
Key Support Levels: $76,606, $73,620, $70,578
- Spot Price: $77,232
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
