Bitcoin has reached a pivotal juncture once again, prompting traders to wonder just how far its price might fall if crucial support levels fail to hold.
In a recent market analysis, an experienced trader shared the key price points he is monitoring and detailed what indicators would confirm further declines for Bitcoin.
Crucial Bitcoin Threshold: $65,800
Pro trader Koroush identifies $65,800 as the most critical short-term level currently under scrutiny.
This figure marks Bitcoin’s latest significant low. In trending markets, prices typically test support and resistance zones before making decisive moves. Should this support give way, selling pressure can intensify rapidly due to liquidations and panic among traders.
The trader emphasized that in strong trends it’s generally wiser to anticipate continuation rather than reversal. This means:
- If support breaks down, prices tend to plunge swiftly.
- If resistance is overcome, rallies often gain momentum aggressively.
At present, Bitcoin seems entrenched in a downward trajectory. If the $65,800 floor collapses, the next substantial support could lie much lower on the chart.
The Next Key Support Level: $55,000
A broader view of weekly charts reveals that around $55,000 stands as the next meaningful safety net for Bitcoin’s price — a level rooted in trading activity from August 2024.
However:
- The reliability of older supports diminishes over time because market dynamics evolve and past data may not fully capture current investor behavior.
Nonetheless based on chart formations available today, $55K remains the primary downside target should $65.8K fail to hold firm.
Evident Signs of Weakness Before Decline
The exact peak wasn’t forecasted precisely but warning signals were apparent beforehand.
Past bull runs saw sharp breakouts above major resistances like $72K or even $108K with sustained upward momentum rarely faltering afterward. Recently though, those surges have lost steam.
- Bulls failed to maintain new highs which quickly reversed into pullbacks.
- The market shifted from explosive advances into choppy sideways movement.
This change hinted at waning strength within buyers’ ranks.
The trader consequently began trimming exposure amid less clear-cut conditions.