Bitcoin Price: Top Reasons Why $65K Support Can End Crypto Crash?
The total crypto market cap has declined by another 2% to $2.48 trillion, according to CoinGecko data. This downturn outlook reflects the sell-off wave that continues to ravage retail investors’ portfolios, leaving nothing but disappointments. Bitcoin price sits in the red at $65,510 and above support at $65,000. Due to the uncertain crypto landscape, it is too early to tell if BTC will rebound from this level or retest $64,000 and perhaps $60,000.
Bitcoin Fear and Greed Index Holds High
The hope for an immediate bull run after the halving cycle of 2024 is gradually fading characterized by widespread losses and weary investors. Last week’s jump to $70,000 briefly changed the outlook for BTC and altcoins but the FOMC meeting and the Federal Reserve’s hawkish stance on interest rate cuts left more gloom than optimism.
In the last 7 days, Bitcoin price has declined by 2.5% on top of a 4.5% decrease in a fortnight. The area at $65,000 appears to be the most solid short-term support.
Defending this level could reinforce bullish outlook in the market for the rest of the week backed by increasing optimism for a spike to $70,000.
Despite the lack of enthusiasm, the crypto fear and greed index holds firmly at 74 indicating the early stages of greed. In other words, investors still consider BTC a suitable asset to buy at its current level.
Caution is advised with the index in greed. Investors, who bought Bitcoin at lower price levels may offload in favor of buying the dip in altcoins. While this could boost some altcoins, especially Ethereum which is moving toward the actual trading of spot ETFs, it would hamper Bitcoin’s recovery above $70,000.
An analysis by researchers at CryptoQuant suggested that Bitcoin has not seen the impact of retail investors as they have yet to join the rally. Often retain investors enter the market when euphoria is picking up the pace. However, with Bitcoin oscillating below $70,000 and support support at $65,000, long-term holders are likely to be providing support.
“This structure suggests that we have not yet reached the peak euphoria of this cycle. The predominance of long-term holders in the market forms a more solid price support base,” CryptoQuant stated.
Bitcoin Price Analysis: A Time To Buy?
Bitcoin is trending downward in a falling wedge pattern, citing a potential recovery in the short term. However, to validate such a move, support at $65,000 must hold water.
The Relative Strength Index (RSI) leans more to the sell side area while holding at 40. If the RSI extends the drop, traders may opt to short Bitcoin thus adding pressure on support at $65,000. If the sell-off continues, Bitcoin will be forced to seek more liquidity at lower levels like $63,000 and $60,000 respectively.
Two death cross patterns on the same four-hour chart imply that sellers have the upper hand, at least for now. Therefore, bulls have an uphill task to overpower the sellers and reform the trend upwards.
The falling wedge pattern will remain unconfirmed until BTC price breaches the upper trend line resistance. Following the breakout, traders would focus on increasing buy orders eyeing gains to $71,000.
Nevertheless, some key resistance levels to keep in mind are the seller congestion at $68,000 and $70,000. Successful rising above these key levels could boost the bullish outlook for new all-time highs.
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