Bitcoin’s rejection at $66K and the break below the 200-day moving average suggest that bearish sentiment is gaining strength.

If the price fails to hold the $60K support, the likelihood of a mid-term decline toward the $52K-$55K zone increases.

Technical Analysis

By Shayan

The Daily Chart

On the daily chart, Bitcoin’s surge above both the 100-day and 200-day moving averages briefly revived bullish sentiment.

However, upon reaching the $66K resistance zone, substantial selling pressure emerged, halting the uptrend. This area has historically served as a robust multi-month resistance, and Bitcoin’s failure to surpass it resulted in a significant rejection.

Currently, Bitcoin is trading below the 200-day moving average of $63.4K and resting on the 100-day moving average of around $61K. This zone is critical, as the $60K support region is both psychological and substantial.

If Bitcoin breaks below this barrier, a mid-term decline toward the $52K-$55K range becomes likely. This area represents the next major support level and could be the target if bearish momentum continues.

The 4-Hour Chart

On the 4-hour chart, Bitcoin’s surge was met with heavy resistance in the 0.618-0.786 Fibonacci OTE retracement zone, which corresponds to the $66K price level.

This selling pressure led to a sharp rejection, resulting in a 10% decline. The presence of sellers near the $66K level indicates that it remains a formidable barrier, acting as a key resistance level in the broader market outlook.

As a result, Bitcoin is expected to enter a short-term consolidation phase, with the $60K psychological support being the next crucial level to watch. If Bitcoin holds above this support, it may consolidate before attempting another upward move. However, if the $60K support is breached, a deeper retracement toward the $55K level becomes highly probable, marking a potential shift to a sustained bearish trend.