After weeks of significant volatility, Bitcoin failed to break through a crucial resistance level around $64,000, increasing the risk of a downturn. The Federal Reserve's decision to cut interest rates did not spur the anticipated rally, leaving the market vulnerable to further decline if Bitcoin does not regain momentum.
Crypto analyst Carl Runefelt stresses the importance of surpassing the $64,000 level to fuel a rally into Q4 2024. However, Bitcoin's failure to do so has led to fear and uncertainty among traders, as bullish sentiment starts to wane and hesitation creeps in.
Bitcoin currently faces a critical juncture around $62,000. This level is pivotal in determining whether the cryptocurrency can reclaim its momentum or dip further to $60,000, with potential for deeper corrections if key support levels are not held.
Runefelt's technical analysis highlights Bitcoin's fragile price structure following unsuccessful attempts to rise, pointing to increased downward pressure. A failure to surpass local highs or hold critical support at $60,000 could indicate the onset of a more significant correction.
The market is now watching Bitcoin closely as it tests key levels. Without a breakthrough of the daily 200 moving average and local supply levels near $66,000, bearish momentum may dominate, posing risks of a deeper correction to $57,500.
These evaluations underscore the critical period Bitcoin faces in the coming days, which will decisively shape its trajectory and influence broader market sentiment. Investors are bracing for potential outcomes, as the market navigates through this uncertain phase.
