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Bitcoin’s price continued in the downward direction this week, extending its bearish movement by nearly 7% in less than 72 hours. The latest push has plunged the cryptocurrency into its Q2-Q3 2024 price cluster, when $BTC traded in a sideways range for about six months.
Bitcoin is in a Crucial Zone
TradingView’s data shows Bitcoin trading at $63,200 at the time of writing, with bearish pressure still intact, suggesting further downward movement. This potential for further decline is boosted by Bitcoin’s latest crash, when the cryptocurrency dropped below $60,000 in the first week of February. The current trend suggests the cryptocurrency may likely retest that support, potentially breaking it in search of a lower bottom.
In the meantime, it is worth noting that the highlighted 2024 price cluster represents a strong price zone for Bitcoin. $BTC’s weekly chart shows how the price surged after breaking out of that cluster, leading to a protracted bullish trend. Breaking below this bracket could trigger a similar outcome in the opposite direction, potentially spelling doom for Bitcoin.
Bitcoin’s Last Line of Defense
Bitcoin at $60,000 falls in the middle of the cluster, which ranges between $50,000 and $70,000, the lower and upper boundaries, respectively. Therefore, cryptocurrency traders are observing Bitcoin’s price activity around this mid-level. Most analysts consider it the last line of defense in the current cycle, a breach of which would trigger further decline.
Notably, reviewing $BTC’s recent behavior alongside some technical indicators leaves a few possibilities on how the price could evolve if it drops below $60,000. That drop would mean Bitcoin has breached its latest support at $59,930, leaving an open route to the next Fibonacci support around $49,000.
Meanwhile, such a critical development will reinforce bearish pressure on the cryptocurrency, potentially triggering a downside breakout from the 2024 price cluster, leaving the long-term future of Bitcoin unpredictable.
Related: Bitcoin Price Prediction: $BTC Struggles at $66K — Is $60K Back in Play?
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