Bitcoin Falls Below Key Support Level Amid Market Crash
- Market Crash: As of February 5, Bitcoin has fallen below the critical support level of $70,000, causing the total cryptocurrency market valuation to plummet from over $4.2 trillion to $2.3 trillion, highlighting extreme volatility and a sharp decline in investor confidence.
- Economist Warning: Renowned economist Nouriel Roubini predicts that Bitcoin and most altcoins will continue to decline due to insufficient user adoption, asserting that 95% of cryptocurrencies are blockchain in name only, lacking decentralization and public validation.
- Historical Context: Despite Bitcoin's previous drop of over 70% in 2022, analysts like Michael Novogratz suggest that the current price is at the lower end of the range, emphasizing that the pain experienced in the crypto industry is part of its evolution, indicating potential for a market rebound.
- Recovery Potential: With the Federal Reserve likely to continue cutting interest rates and the Crypto Fear and Greed Index dropping to an extreme fear level of 11, historical trends suggest that cryptocurrency prices often rebound from such levels, indicating a possible recovery in the coming weeks or months.
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Technical Analysis for BTC
Technical Sentiment Analysis for Bitcoin (BTC) As of , Bitcoin (BTC) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Bitcoin (BTC) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 36441.945 | 48220.973 | 61177.695 | 72956.723 | 85913.445 | 97692.473 | 110649.195 |
| Fibonacci | 48220.973 | 57670.029 | 63507.666 | 72956.723 | 82405.779 | 88243.416 | 97692.473 |
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