Bitcoin Dips Below $65,000

Bitcoin's price has fallen below $65,000, with the cryptocurrency currently trading at $64,739, down 5% in the last 24 hours [1]. The decline has sparked concerns among investors, with many wondering if the bulls will buy the dip and push the price back up, or if the bears will maintain their grip on the market.

What drove the move

The launch of fresh strikes by the US and Iran has hurt sentiment, but according to Bitrue Research Institute research lead Andri Fauzan Adziima, the fall was more about “leveraged liquidations, heavy ETF outflows, and technical breakdowns than pure Iran news, but it amplifies the fear” [1]. Veteran trader Peter Brandt said in a post on X that BTC has formed an expanding triangle, a common and reliable pattern, and projects a decline to about $56,000, but added that a move above $75,000 would invalidate this bearish view [1]. The short-term trend has turned negative, but the bulls are unlikely to give up without a fight, with buyers expected to enter the $65,000 to $60,000 zone, but relief rallies are likely to be sold into [2].

The crypto market data daily view shows that the bears are in control, with Bitcoin's price collapsing after breaking below the support line on Tuesday, indicating aggressive liquidation of long positions [1]. The ETH/USDT pair may dip to the solid support at $1,750, with the oversold level on the relative strength index (RSI) suggesting a bounce is possible from $1,750, but rallies are likely to be sold into [2]. Other major altcoins, such as BNB, XRP, and SOL, also risk resuming their downtrend, while HYPE, ZEC, and XLM look strong on the charts [1].

Token metrics

The circulating supply of Bitcoin is currently at 19.3 million, with a market capitalization of $1.23 trillion [1]. The token unlock schedule for Bitcoin is not a major concern at the moment, but the heavy ETF outflows have put pressure on the price [1]. The on-chain data shows that the number of large transactions has decreased in the last 24 hours, indicating a decrease in institutional investment [2].

What to watch

• The $60,000 support level, which is expected to be defended by buyers [1]
• The 20-day exponential moving average ($74,064), which is expected to be sold into by bears [2]
• The potential for a move above $75,000, which would invalidate the bearish view [1]

The real significance of the current price action is the potential for a further decline to $50,000, which would be a significant drop for the cryptocurrency. The open question is whether the bulls will be able to buy the dip and push the price back up, or if the bears will maintain their grip on the market.