Tuesday was a nerve-wracking day for Bitcoin holders as the price plummeted to solid support at $64,000. However, strong buying emerged at this level, pushing $BTC back towards the $65,500 mark. The question on everyone’s mind now: Is this the end of the recent downtrend?
Is the Downtrend Over?
In the past couple of weeks, Bitcoin has experienced a roughly 9% decline, reaching up to 11% if we include Tuesday’s dip to $64,000. Bitcoin holders are anxious to know if this marks the end of the current correction or if further declines are imminent.
Strong Buying Support at $64,000
As shown in the daily chart, Bitcoin’s price closed below the $65,500 support level. For this to confirm a shift into resistance, Wednesday’s candle must also close below this level. The wick down to $64,000 indicates robust buying support at this level.
Trend Line Support Is Critical
The weekly chart provides a clearer perspective. If Bitcoin can maintain support at $65,000, it will also be holding the upward trend line. A weekly close above this support is essential to confirm the trend remains intact. A break below this trend line could signal a more significant shift in market sentiment.
Major Fibonacci Support at $60,000
By drawing Fibonacci levels, we can pinpoint major support zones. Notably, $60,000 has acted as a support level in 7 of the last 16 weeks. If Bitcoin breaks below its current trend, $60,000 could also be breached, potentially leading to further declines to $52,000 and $46,000—critical levels before entering a bear market.
Bitcoin Entering Oversold Territory
Despite challenges such as miners selling after the halving, profit-taking by long-term holders, and hedge funds shorting on the CME exchange, a bounce seems likely. Bitcoin is approaching oversold territory on medium to higher time frames, which could boost upward momentum and potentially drive prices higher in the coming weeks.
Conclusion
While Bitcoin faces several headwinds, strong support at $64,000 and the potential for a bounce suggest that the recent downtrend may be nearing its end. Investors will be closely watching key support levels and trend lines to gauge Bitcoin’s next move.
