Why Is Crypto Dropping? Bitcoin Tests $64K Support as Analysts Warn of Further Crash - Coinpedia
The crypto market sell-off has intensified, with Bitcoin approaching a critical support zone after weeks of steady declines, falling around 21% from its recent highs.
Bitcoin has now fallen around 21% from its recent highs, bringing its price into the $69,000–$64,000 range, which analysts have been tracking as a potential bottoming zone. The broader crypto market continues to struggle with selling pressure as the decline intensifies.
Critical Support Zone
Bitcoin is now testing a key support zone between $69,000 and $64,000. The $69,000 level marks the 61.8% Fibonacci retracement, while $64,000 represents the 78.6% level. Holding this range could support a recovery and keep the inverse head-and-shoulders pattern intact, which could signal a potential long-term market bottom.
However, a break below this zone could weaken the recovery setup. Bitcoin is also testing its 200-week exponential moving average, and a weekly close below this indicator could increase selling pressure and push prices lower.
Potential Further Declines
Bitcoin could still fall further and form a new low. A break below its previous low would weaken the possibility of a long-term market bottom in 2026. In this scenario, Bitcoin could drop to $50,000 or lower, extending the downturn through the fourth quarter.
The current decline was expected as part of his broader market outlook. However, he warned that there is no guarantee that the support will hold.
Altcoin Market Pressure
Ethereum is approaching a key support level near $1,800, which aligns with the 78.6% Fibonacci retracement and a long-term trendline that has supported its price since 2022. A drop below $1,800 could weaken Ethereum's potential inverse head-and-shoulders pattern and increase selling pressure.
Other major altcoins are also losing ground. SUI has returned to lower price levels, while Ondo has erased its recent gains and fallen back into its previous accumulation range. Cardano is testing support near $0.17, while Chainlink is trading near levels last seen in August 2020.
Market Uncertainty Factors
The recent Binance hack and Nvidia's market weakness have added to uncertainty across financial markets. Speculation suggests that Binance futures trading may have pushed prices toward liquidity zones after the hack, while spot buyers absorbed the selling pressure. Binance has announced that it resolved the issue.
Nvidia's recent weakness could reflect changing investor sentiment rather than a shift in its business fundamentals. The company has played a major role in driving market gains over the past two years, making its recent decline another factor weighing on broader market sentiment.
What Comes Next
Bitcoin's next move will depend on whether buyers defend the current support zone. The market is showing oversold conditions, similar to previous periods that preceded major price bottoms. However, Bitcoin and Ethereum could still face further declines before any recovery.
The $69,000–$64,000 range remains critical for Bitcoin. A recovery above this zone could keep the potential inverse head-and-shoulders pattern intact. However, a sustained break below support could weaken the bullish outlook and send Bitcoin toward $50,000 or lower.
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