Bitcoin (BTC), the world’s leading cryptocurrency, is facing new lower price targets after experiencing a significant drop over the past week. With multiple technical indicators suggesting further declines, traders and analysts are closely monitoring the market to understand how low Bitcoin can go.

Current Market Overview

As of now, Bitcoin’s price has seen an 8% decline in the last seven days, leading to a considerable debate among market participants about its future direction. The cryptocurrency, which attempted to break above $70,000 on June 12, has since retraced to around the $66,000 mark.

At the time of writing, Bitcoin is trading at approximately $66,842, reflecting a 4% decrease in the last 24 hours, according to Coin Market Cap data.

Technical Signals Pointing to $63,000

Prominent analysts have utilized various technical analysis methods to predict Bitcoin’s potential next move. Among them is Mark Cullen, who employed the Elliott Wave Theory to suggest that Bitcoin could soon experience a final downward movement, potentially dropping to around $63,000.

In a post on social media platform X on June 11, Cullen remarked, “Bitcoin is sweeping the weekend highs and then continuing with the downside move. There is still more to go.” He emphasized the significance of upcoming economic events, such as the Consumer Price Index (CPI) and Federal Open Market Committee (FOMC) meetings, in influencing Bitcoin’s price trajectory.

Support and Resistance Levels

Another analyst, Matthew Hyland, pointed out that Bitcoin was trading above a critical support level at $67,000, which he identified as the first line of defense against further declines. Hyland shared a chart indicating that Bitcoin’s price was consolidating on longer timeframes, which he interpreted as a sign favoring a continuation of the uptrend. However, he cautioned that if Bitcoin falls below this level, the next target could be around $64,700.

Hyland’s analysis suggests that the $63,000 to $65,000 demand zone represents a significant area of support. A drop to this range would mark one of the largest pullbacks from Bitcoin’s recent all-time highs, with a potential decrease of around 15%.

Moving Averages and Market Indicators

Michael van de Poppe, founder of MN Capital, also examined Bitcoin’s price action on the daily timeframe to gain insights into its support levels. Van de Poppe highlighted that Bitcoin had lost the support of its 50-day exponential moving average (EMA), which was positioned at $67,011.

Despite this, he noted that Bitcoin still maintained a crucial support level above $66,000, where the 100-day EMA is currently located. However, a closer look at the daily chart revealed that Bitcoin had also lost this support, increasing the likelihood of further declines.

The next key support level identified by van de Poppe is the 200-day EMA at $64,000, which could serve as the last line of defense for Bitcoin in the short term. He also pointed out that the relative strength index (RSI), which measures the speed and change of price movements, was trending downward and indicated bearish market conditions with a reading of 44.

Liquidity and Market Sentiment

Data from Coin glass, a cryptocurrency analytics platform, shows significant liquidity building up between $63,000 and $65,500 over the past 30 days. This accumulation of liquidity could influence Bitcoin’s price movements in the near future, as it represents potential buying or selling interest at these levels.

Conclusion

As Bitcoin navigates through this period of volatility, investors and traders are advised to keep a close eye on key support and resistance levels, as well as upcoming economic events that could impact the market. While the potential drop to $63,000 is a cause for concern, understanding the technical signals and market indicators can help in making informed decisions.