Bitcoin Faces Key Level Test as Price Falls Below $60,000

Bitcoin is once again testing a crucial level after dropping below $60,000 this week for the first time since May 3. The cryptocurrency is currently trading above $61,000, about 17% lower than its March peak of $73,797.68, according to Coin Metrics.

Chart analysts are cautious, warning that there are no buy signals and that bitcoin could see further downside. Ari Wald, an analyst at Oppenheimer, noted that trading could be under pressure below the $66,000 resistance level, which is the cryptocurrency’s 50-day moving average. He highlighted key support levels at $57,500 and $56,500, with a breach below these levels considered damaging.

Bitcoin has been range-bound between $60,000 and $70,000 since March, lacking significant catalysts and facing selling pressure from miners. If bitcoin fails to hold above $57,000, Wald believes the next key downside level could be around $49,000.

David Keller, chief market strategist at StockCharts.com, also sees potential downside for bitcoin, with levels around $58,000 and a possible drop to between $50,000 and $52,000. However, he noted that buyers tend to step in around $60,000, and the cryptocurrency often finds support at round numbers.

Tom Fitzpatrick of R.J. O’Brien identified major support at $56,527 and warned of a potential double top neckline formation, which could lead to a significant decline. Despite this, Wald remains optimistic about the current support level and the 200-day moving average, suggesting that the trend is still bullish.

Overall, bitcoin is down nearly 10% for the month, with a brief spike to $71,000 at the beginning of June followed by a steady decline. The cryptocurrency market remains volatile, with analysts closely monitoring key levels and potential price movements.