Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Bitcoin continues to experience serious selling pressure at the end of the first week of March, forcing market participants to prepare for a potential retest of the psychological $60,000 mark. After unsuccessful attempts to hold above the $70,000 level, the technical picture on the chart is beginning to point to the dominance of bearish sentiment.
On the current weekly BTC/USDT chart by TradingView, the formation of a descending channel is clearly visible. The key negative event and signal was the break of the $68,000 zone, which previously acted as local support for buyers. Now this level has turned into resistance that currently limits any attempts at a local recovery.
Why Bitcoin could break below $60,000
Three main factors can be identified that indicate why a move below $60,000 is now possible as never before:
- The 200-day moving average, below which the BTC price has fallen. This is a classic signal that the medium-term trend is currently bearish.
- RSI, the relative strength indicator, which is now in the bearish zone, meaning below 40 points. This suggests that the strength of buyers has been exhausted and the potential for further decline still remains.
- The main interest of large Bitcoin buyers is currently concentrated in the $52,000 to $55,000 range. The market often moves toward such zones to collect liquidity before the start of a new growth cycle.
If the current week closes below $65,000, where the 200-day moving averages pass, the probability of a fast squeeze toward $60,000 and even lower will become the dominant scenario.
The current chart suggests that the bottom of the local correction has not yet been reached. Holding $60,000 for BTC could become the base for a rebound, while a break below it would open the path to a continuation of the extended correction.
Dan Burgin
Vladislav Sopov
