Bitcoin
Top Reasons Why $65K Support Could End Crypto Crash?
Total cryptocurrency market capitalization fell another 2% to $2.48 trillion, according to CoinGecko data. This recession outlook reflects the sell-off that continues to devastate retail investors’ portfolios, leaving only disappointments. Bitcoin price is in the red at $65,510 and above support at $65,000. Due to the uncertain crypto landscape, it is too early to say whether BTC will recover from this level or retest $64,000 and perhaps $60,000.
Bitcoin Fear and Greed Index Remains High
Hope for an immediate bull run after the 2024 halving cycle is gradually fading, characterized by widespread losses and tired 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 aggressive stance on interest rate cuts left more pessimism than optimism.
In the last 7 days, Bitcoin price decreased by 2.5%, after falling 4.5% in two weeks. The $65,000 area appears to be the most solid near-term support.
Defending this level could reinforce the market’s bullish outlook for the rest of the week, supported by increased optimism for a rise to $70,000.
Despite the lack of enthusiasm, the crypto fear and greed index remains 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.
Crypto Talent and Greed Index
Caution is advised with the greed index. Investors who purchased Bitcoin at lower price levels may dump in favor of buying the dip in altcoins. Although this could boost some altcoins, especially Ethereum which is moving towards real spot trading of ETFs, this would hamper Bitcoin’s recovery above $70,000.
An analysis carried out by researchers from CriptoQuant suggested that Bitcoin has not seen the impact of retail investors as they have not yet joined the rally. Often, investors withhold entry into the market when euphoria is rising. However, with Bitcoin hovering below $70,000 and supporting support at $65,000, long-term holders are likely to provide support.
“This structure suggests that we have not yet reached the peak of euphoria of this cycle. The dominance of long-term holders in the market forms a more solid base of price support,” CryptoQuant stated.
Bitcoin Price Analysis: Time to Buy?
Bitcoin is trending lower in a falling wedge pattern, citing a potential near-term recovery. However, to validate such a move, the $65,000 support must be valid.
Bitcoin Price Chart | Trading view
The Relative Strength Index (RSI) leans more towards the sell area while holding at 40. If the RSI extends the decline, traders may choose to sell Bitcoin, thus increasing pressure on the support at $65,000. If the liquidation continues, Bitcoin will be forced to seek more liquidity at lower levels such as $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, the bulls have an uphill task to dominate the sellers and reform the uptrend.
The falling wedge pattern will remain unconfirmed until BTC Price breaks the resistance of the upper trend line. After the breakout, traders would focus on increasing buy orders targeting gains towards $71,000.
However, some important resistance levels to consider are seller congestion at $68,000 and $70,000. A successful climb above these key levels could boost the bullish outlook to new all-time highs.
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