Bitcoin has been under considerable selling pressure, recently dipping below significant yearly lows as tensions escalate between the United States and Iran. This unsettling atmosphere has contributed to a downward trend, although Bitcoin is nearing levels that may initiate a temporary consolidation in the near term.
Bitcoin Price Overview: Daily Chart
On the daily chart, Bitcoin (BTC) has faced aggressive selling, causing prices to fall below critical support zones, including the yearly low of $74,000. Currently, the price is testing the $70,000 psychological barrier, where buying interest may emerge.
If demand at this level is sufficient to counteract the selling pressure, Bitcoin’s downtrend could stabilize, facilitating a movement within a range of $70,000 to $80,000 as the market catches its breath. Conversely, if $70,000 fails to hold as support, Bitcoin may face a further decline, targeting the next support around $63,000.
Daily Chart
BTC/USDT 4-Hour Chart
Analyzing the 4-hour chart, Bitcoin has been trending down within a bearish channel, reflecting market weakness. A breach below the channel’s midline near $74,000 has prompted significant selling towards the channel’s lower boundary.
Despite this decline, Bitcoin has reached a crucial support point at $70,000, which holds psychological importance. The market is likely in need of a consolidation phase, with potential for erratic movements around this support until clearer direction emerges. If recovery occurs, the $75,000 and $80,000 zones may serve as upward targets.
4-Hour Chart
Sentiment Analysis
The average order size in futures has shown a shift in participant behavior, evident as Bitcoin approaches the $70,000 level. The presence of sizeable buy orders suggests renewed interest from major market players during this price revisit. Historically, this price range has attracted significant buying interest, which may bode well for a rebound if supported by ongoing whale activity.
Average Order Size
In conclusion, while Bitcoin faces downwards pressure, the $70,000 threshold could serve as a critical support level. Should substantial buying interest materialize, it might pave the way for stabilization and potential recovery.
