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Bitcoin Breaks Below $65K as Leverage Wipes Out Billions and Tests Long-Term Support
- Bitcoin has broken below the critical US$69,000 support level, the 2021 cycle peak, signaling potential further downside toward the US$58,000 to US$69,000 demand zone.
- The US$58,000 mark is a pivotal floor, aligning with both recent high-volume buying and the 200-week moving average, a level historically known to act as a bear market bottom.
- Technical indicators like the Weekly RSI dropping below 30 and a negative Adjusted NUPL suggest extreme market stress, conditions that often precede sharp short-term rebounds.
Bitcoin breaking below US$69K (AU$99K) is important because that level was the 2021 peak, and old cycle highs often act as support in later bear markets.
The last cycle is the example, as Bitcoin eventually bottomed around the 2017 peak near US$19,600 (AU$28K), with a brief deeper drop to about US$16,000 (AU$23K) in November 2022.
Even so, the pattern is not clean. In past cycles, BTC has often traded below the prior peak before it finally bottoms, so a move under US$69,000 still leaves room for more downside. At the time of writing BTC traded for US$64,104 (AU$92,242) as per data from CoinMarketCap.
Are Traders Lining Up to Buy the Dip?
The main “demand area” being highlighted is US$58,000 (AU$83K) to US$69,000 (AU$99K). A lot of recent buying happened in that range, so it’s where many holders sit at or near their cost. US$58,000 also lines up with the 200-week moving average, a long-term level many traders watch as a potential floor.
Related: Michael Burry Warns Bitcoin Breakdown Could Trigger “Sickening” Cascade
Separately, order books show large buy interest between about US$68,000 and US$65,000 (AU$97K), which suggests some buyers plan to step in on dips, though those orders can move.
On indicators, two signals point to stress that often shows up near bottoms. According to Subu Trade, a weekly RSI below 30 is rare for Bitcoin and has historically been followed by sharp short-term rebounds.
Adjusted NUPL turning negative means the average holder is now underwater; similar conditions in prior cycles tended to occur near heavy selloffs before recoveries.
Read more: Meta Missed Repeated Warnings as Australian Influencer Promoted Illegal Crypto Gambling
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
