Bitcoin Nears Critical Support: Analyst Warns of Deep Correction if $60,000 Fails
Bitcoin Nears Critical Support: Analyst Warns of Deep Correction if $60,000 Fails
A recent analysis highlights the precarious position of Bitcoin's price, asserting that the $60,000 level is a crucial support point. While a recovery to $70,000-$75,000 is possible if bulls defend this level, failure to hold $60,000 could lead to a rapid dip towards new yearly lows, potentially below $44,000. Bears remain largely in control, and the market faces a significant turning point, with a notable defense currently mounted above $62,000.
Bitcoin Price Lows: Analyst Says We’re Doomed If This Happen
The Bitcoin price action over the last few months has been unpredictable, with bears firmly in control. While speculations point toward a possible recovery, specific levels must be maintained to actualize this, or risk significant losses to bears.
Bitcoin Price Needs To Hold Above $60,000
Crypto Analyst Swallow Academy indicates that the $60,000 level has become one of the most important support points for Bitcoin. This level, being the lowest point of the early February crash, suggests bears may retest it.
It is imperative that bulls defend this level to activate a recovery trend. If successful, holding above $60,000 and triggering buy-side volume could lead to a bounce back to the $70,000-$75,000 area, potentially liquidating major short positions and eventually leading to a natural downtrend post-recovery.
However, if bulls fail to hold $60,000 and buy-side pressure wanes, sell-side pressure is expected to rise. This scenario would see the Bitcoin price dip faster than anticipated, triggering another crash trend toward new yearly lows. Swallow Academy's analysis posits that a break of local lows would result in a very deep move to lower lows.
While a recovery from these ultimate lows is expected, the chart suggests Bitcoin could dip below $44,000 before a local bottom is established. Currently, Bitcoin bulls have mounted a notable defense above $62,000, presenting the next level for bears to challenge. Historically, a break below the previous cycle low of $61,354 would be an unprecedented event for Bitcoin.