Bitcoin has dipped below the $67,000 mark amidst increased market fluctuations, leading to a new wave of liquidations in the derivatives sector. In just 24 hours, over $250 million in leveraged positions were liquidated, predominantly affecting long traders as prices fell through crucial intraday support levels.
This surge in liquidations indicates growing pressure following Bitcoin’s recent decline on its daily chart and the loss of a two-week support level. Analysts are now keenly observing whether $BTC can regain the $72,000 threshold—a level that could potentially reverse short-term momentum back towards bullish sentiment.
Bitcoin Breaks Through Significant Support After Double Top Formation
The price of $BTC has fallen beneath a critical support zone after establishing a double-top pattern on its two-week $BTC/USD chart. This analysis comes from crypto trader Trader Tardigrade (@TATrader_Alan) via TradingView. The chart illustrates Bitcoin’s price movements across various cycles and highlights repeated peaks that have struggled near previous highs before breaking down through an established purple support band. Consequently, Bitcoin’s value slipped below this prior floor and entered into a contracting triangle formation characterized by converging trendlines following a sharp drop.
Chart depicting Bitcoin’s 2 Week BTCUSD Contracting Triangle Source: Trader Tardigrade via X
The graphical representation shows that Bitcoin formed two rounded peaks close to earlier cycle highs before losing horizontal support that had previously held during consolidation phases. In past instances where this occurred, prices fell through this base and then became compressed within narrowing ranges defined by descending resistance lines and ascending supports. Thus, this shift from expansion to compression signals not an ongoing advance but rather a pause after significant selling pressure.
This breakdown beneath the supportive band mirrors historical behavior observed earlier on the left side of the chart when Bitcoin lost similar foundational levels before forming another contracting triangle at lower points. During that previous phase, prices stabilized within this wedge-like structure prior to entering into an upward trend over subsequent months. Therefore, current patterns suggest that Bitcoin is experiencing comparable post-breakdown consolidation based on historical parallels illustrated in these charts.
Trader Tardigrade noted that movement below key support followed by double-top formation has framed today’s range as a contracting triangle on biweekly timeframes. The projection depicted suggests potential recovery paths post-compression; however, it primarily showcases structural comparisons between past cycles versus present setups without guaranteeing outcomes for future price actions while still coiling within tightening ranges—leaving upcoming directional shifts reliant upon how effectively prices resolve their position within this triangle.
Bitcoin Approaches Critical Fibonacci Support Amid Ongoing Downtrend
The daily $BTC/USD chart reveals persistent downward pressure as values continue their descent after failing to maintain above descending trendlines according to analyst Dave the Wave (@davthewave) sharing insights via TradingView snapshots at press time showing pricing around $69,364—a situation indicating broader short-term bearish trends while hovering near rising supports drawn from previous lows.
Daily BTCUSD Chart for Bitcoin Source: TradingView via Dave the Wave on X
The displayed data indicates substantial sell-offs breaching horizontal resistance around mid-$80k levels leading into accelerated declines resulting in lower highs/lows across daily timelines—bringing them closer toward confluence zones where diagonal supports intersect with Fibonacci retracement areas marked notably at 0.5 retracement near approximately $72k which lies above current trading figures while lower reference bands appear nearer low-$60ks due sharp wicks downward previously experienced during volatility spikes recently encountered .
Alongside these observations remains intact descending trendline originating from November peak capping any rebounds attempting recovery—the possible upside reaction point being highlighted nearby aligns roughly with falling resistances situated approximately around upper-mid-range targeting areas nearing about$86k therefore necessitating any short-lived recoveries first clearing rising supports residing low-seventies prior testing aforementioned overhead downtrends indicated visually throughout charts presented here today .
Dive into shorter-term forecasts reveals reclaiming territory above pivotal thresholds like$72k would open avenues toward mid-eighty thousand brackets thus currently positioned just atop recent drops boundary compressing under resistances whilst resting closely against those ascending pressures awaiting decisive breakouts dependent solely upon whether it can secure footholds beyond said limits or remain restrained beneath declining forces surrounding overall landscape shaping future trajectories moving forward!