Warning Bitcoin could face more capitulation if this support level is not maintained
As Bitcoin’s value drops below $66,000, analysts predict that the original cryptocurrency will continue to see losses in the days ahead. A crypto trading expert, TradingShot, highlighted in a TradingView post on June 17th, advised investors to monitor Bitcoin’s interaction with the 50-day moving average (1D MA50) at approximately $66,100, a level that previously acted as support.
If Bitcoin fails to reclaim the 1D MA50 as support, investors should be prepared for a potential drop to around $61,000, which marks the upper limit of the support zone. Further weakness below $61,000 could indicate a deeper decline towards $56,000, close to the 1D MA200, potentially forming a long-term bottom.
The analyst emphasized the significance of the 1D MA50 as a support level, pointing out Bitcoin’s consistent daily closures above it since Friday. Sustaining above the 1D MA50 could signal a bullish trend if Bitcoin targets $72,000, the lower boundary of the resistance zone.
Despite these insights, in the short term, Bitcoin is struggling to stay above $65,000 after slipping below $67,000. The recent bearish momentum led to Bitcoin hitting a monthly low of around $64,000.
Bitcoin’s volatility over the past week has been influenced by various factors, including significant outflows from a US-based ETF and political uncertainty surrounding France’s election decision. The strengthening dollar has historically put pressure on Bitcoin and shifted its trajectory away from the $70,000 mark.
On-chain data reflects the increased volatility of Bitcoin, with significant spikes in both exchange inflow and outflow. This surge in exchange activity suggests that more investors are transferring Bitcoin to exchanges, potentially in preparation for selling during the bearish trend.
At present, Bitcoin is down 0.5% on the daily chart, trading at $65,160. Over the past week, the asset has declined by over 2%. With Bitcoin losing support at $66,000, market watchers are now waiting to see if the bulls can influence the price in an increasingly bearish environment.
Disclaimer: The information provided in this article should not be construed as investment advice. Investing in cryptocurrencies carries risks, and investors should be cautious and informed before making any investment decisions.
