Bitcoin Faces New Targets After Breaking Key Support Amid Market Sell-Off

Thursday Market Overview:

Thursday Market Overview:

Cryptocurrency markets have experienced significant losses over the past 24 hours, with the total market capitalization falling below $2.5 trillion, representing a 5% decline in one day. This sell-off is driven by speculation surrounding the upcoming US elections and liquidation of cryptocurrency ETFs. Bitcoin is in its third consecutive day of decline, currently challenging the key support level at $57,000.

Technical Analysis:

Bitcoin’s continued downtrend, following a rejection at the confluence of the 34-day and 200-day moving averages, has entered a new phase with the break below the recent low of 59,816.99. Sellers have now tested the two-month low support at 58,741.59. A sustained close below this critical support level could trigger further declines towards 57,124.55 and 55,863.33. Should Bitcoin’s six-month low fail to hold, sellers may target 53,170.89.

Alternative Scenario:

If buyers re-enter the market, they must break above the resistance at 63,770.65 and reclaim positions above the moving averages to reverse the downtrend.

Market Overview and Key Levels

Resistance Levels:

• Resistance 4: 63,770.65
• Resistance 3: 61,327.29
• Resistance 2: 59,816.99
• Resistance 1: 58,741.59

Current Price (at the time of analysis): 58,122.50

Support Levels:

• Support 1: 57,124.55
• Support 2: 55,863.33
• Support 3: 53,170.89

Impactful Events:

The cryptocurrency market is heavily influenced by investor sentiment and the actions of large holders, known as “whales,” rather than traditional financial and economic events. In a declining market, negative news tends to spread rapidly among investors, exacerbating sell-offs. One of the pressures on Bitcoin’s price is the anticipation of Ethereum-based ETFs. However, it appears unlikely that the US SEC will approve an Ethereum ETF by the predicted launch dates, adding to the bearish sentiment.

Oscillators and Risk Warnings:

RSI (Relative Strength Index): Bearish, indicating continued selling pressure.

MACD (Moving Average Convergence Divergence): Bearish, supporting the downtrend.

Moving Averages: Bearish, reflecting the current negative price action.

Conclusion:

Bitcoin is currently under significant selling pressure after breaking key support levels, driven by broader market sell-offs and negative investor sentiment. If the price sustains below 58,741.59, further declines towards 57,124.55 and 55,863.33 are likely, with a potential target of 53,170.89 if the bearish momentum persists. Conversely, a reversal would require buyers to break above 63,770.65 and reclaim positions above the moving averages.

Investors should closely monitor market sentiment and news developments, particularly regarding cryptocurrency ETFs and regulatory decisions, as these factors will significantly influence Bitcoin’s price trajectory in the near term.