BTC Dips Below $61K: What’s the Next Support Level?

Bitcoin’s rejection at the $66K mark and the drop below the 200-day moving average indicate that bearish sentiment is becoming more pronounced.

Should the price fail to maintain the $60K support level, the chances of a mid-term drop towards the $52K-$55K range will increase.

Technical Analysis

By Shayan

The Daily Chart

On the daily chart, Bitcoin’s breakout above the 100-day and 200-day moving averages momentarily rekindled bullish sentiment.

However, after hitting the $66K resistance level, significant selling pressure emerged, stopping the upward movement. This region has been a strong multi-month resistance, and Bitcoin’s inability to break through it led to a sharp rejection.

At present, Bitcoin is trading below the 200-day moving average of $63.4K and hovering around the 100-day moving average of approximately $61K. This range is crucial, as the $60K support zone is both psychological and crucial.

If Bitcoin breaks through this level, a mid-term slide towards the $52K-$55K area becomes likely. This zone represents the next significant support level and could be a target if the bearish momentum continues.

The 4-Hour Chart

In the 4-hour chart, Bitcoin’s rally faced substantial resistance within the 0.618-0.786 Fibonacci OTE retracement zone, aligning with the $66K price point.

This selling pressure caused a sharp rejection, leading to a 10% drop. The activity of sellers around the $66K mark shows that it remains a strong hurdle, acting as a critical resistance level in the overall market landscape.

Consequently, Bitcoin is likely to enter a short-term consolidation phase, with the $60K psychological support being the next vital level to monitor. If Bitcoin manages to stay above this support, it may consolidate before attempting another upward rally. However, if the $60K support is broken, a deeper pullback toward the $55K level becomes very probable, signaling a potential shift towards a prolonged bearish trend.

On-chain Analysis

By Shayan

The Bitcoin Coinbase Premium Index is an essential tool for gauging whether U.S. institutional investors or large traders are actively acquiring or divesting BTC on Coinbase relative to other platforms. Presently, the index reflects negative values, signifying bearish sentiment in the market, driven by substantial selling pressure or a slowdown in accumulation by major investors.

In the short term, this negative premium highlights a dearth of demand from U.S.-based institutional investors, contributing to the prevailing bearish market mood. Nevertheless, this period of muted sentiment among long-term holders can present appealing buying opportunities. From a broader perspective, while the market remains within a descending trend channel, both accumulation and selling pressures appear to be diminishing.

This indicates a phase of market indecision where neither bulls nor bears dominate the price action. Consequently, this is not an optimal time for short-term trading, as the absence of a clear trend elevates risk.