Bitcoin Drops Below $62,000 As Analysts Warn Of Potential Further Decline
Following a 5% drop on Tuesday, Bitcoin (CRYPTO: BTC) is down 0.3% to $61,680 on Wednesday afternoon, with analysts cautioning traders about potential further downside if key support levels don’t hold.
What Happened: Alex Kuptsikevich, senior market analyst at FxPro said a technical factor added to the selling: the day before, BTCUSD had fallen below its 200-day moving average, reinforcing the exit of ‘weak hands’ from the asset.
Experts are closely watching the $60,918 level, which represents the 21-week moving average.
According to a report, if Bitcoin trades below this level, traders should consider reducing their long positions.
The cryptocurrency market as a whole has seen a significant correction, with the total market capitalization dropping 4.2% in the last 24 hours to $2.16 trillion.
Ethereum (CRYPTO: ETH), the second-largest cryptocurrency, is down 1.5% at $2,449.
“Bitcoin found local support as it approached its 50-day moving average just above $60.3K. Geopolitics seem to have interfered with the bullish trade, pushing Bitcoin away from the upper boundary of the …
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