BTC Price Analysis: Bitcoin Drops to $67K, Will It Test $66K Support Soon?

BTC Price Analysis: Bitcoin Drops to $67K, Will It Test $66K Support Soon?

At the beginning of the day, Bitcoin started trading at a level near $69,450, with some signs of early-hour consolidation. However, in the course of a day, the price went down and faced a great sell-off, having lost 3.17% of its value in the last 24 hours. This decline continued throughout the day, and the price went down to its current level of about $67,106. The resistance level initially appeared to be around $69,500 where the price struggled before the drop.

The move from the resistance area was rather sharp, which indicates that the attempts for Bitcoin to return to this level may result in a similar pressure to sell. The price went down and broke several minor support levels in the process, only pulling back at the $67,100 level. This area can be a short-term support, but if it gives way, further lows may be seen testing the support zone around $66,000 as traders may look to take profits at these levels or liquidate positions to minimize their losses.

BTC/USD 24hr Price Chart (Source: CoinMarketCap)
BTC/USD 24hr Price Chart (Source: CoinMarketCap)

The trading volume has increased by 95.81% in the past 24 hours, which shows that trading activity has picked up at the same time as the price drop. This indicates high transaction volumes in the sell-off process of Bitcoin as the price went down.

The capitalization for Bitcoin has also fallen to $1.32 trillion, which is 3.11% less than the previous value. These metrics reveal that the market has been bearish over the last day, despite the fact that the volume has increased, the market has not been able to bounce back and instead went into a more accelerated selling process.

BTC/USD Technical Analysis

The CMF indicator is also in negative territory on the 4-hour Bitcoin (BTC) timeframe, with a reading of -0.23. When this indicator is below zero, there is more selling pressure than buying pressure since the CMF value calculates the amount of Money Flow Volume that takes place at a specific period. The negative value could indicate that the bears still control the market.

The CMF has remained negative throughout, supporting continuous selling pressure. Traders think such a trend should be seen as a warning to avoid bullish positions because the lack of buying pressure may prevent the price from increasing.

BTC/USD 4-hr Price Chart (TradingView)
BTC/USD 4-hr Price Chart (TradingView)

Also, the AO has a value of -1,703, which supports the bearish outlook presented by the CMF. The AO, defined as the difference between a 34-period and a 5-period simple moving average of the bars’ midpoints, is also negative and has declined. This decrease suggests that the bears are in charge of the market since the recent price actions have seen less buying pressure.

The Moving Average Convergence Divergence (MACD) for Bitcoin (BTC) on the 4-hour chart also has a bearish outlook which indicates a downward trend in the market. The MACD line is under the signal line, and both lines are under selling pressure, further supported by the negative histogram bars with expanded volumes.

The current readings of MACD at -296 and Signal at -319 depict that bearish momentum is still rising. This can only mean that the prices may still drop until there is a bullish crossover or any other positive interferences in the market.

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