🔥Bitcoin Plummets! Is the Bear Market Just Beginning? Where is the Path to Recovery?

Recently, the cryptocurrency market has suffered a heavy blow, and the price collapse of Bitcoin (BTC) has attracted widespread attention. Panic sentiment is spreading, Bitcoin has fallen below the major upward trend line, trading volume is sluggish, and recovery seems bleak, with prices possibly dropping below $70,000.

📉 Significant Outflow from Bitcoin ETF

The US spot Bitcoin ETF has experienced its fifth-largest outflow day since its establishment, with a net outflow of 5.37K BTC, equivalent to $516.4 million. Previously, Strategy (formerly Microstrategy) announced a large purchase of BTC, but the market situation has taken a sharp turn for the worse.

📈 Short-term Charts Not Looking Optimistic

From a technical chart perspective, the price of Bitcoin has fallen below a descending wedge and continues to cross the major upward trend line. Although there is slight support at the current price level, it may be difficult to sustain. If the price continues to decline, it could reach the crucial $70,000 mark.

🚨 Reached a Critical Support Level

The daily chart shows that Bitcoin has reached a critical moment. Bears only need to push slightly, and the price will plunge into the abyss. However, Fibonacci levels indicate that the 0.382 level is slightly below the current price and may serve as the last line of defense. If a rebound occurs from here, it could even be seen as a bullish signal.

However, it should be noted that if the price falls below this level, the first support will appear at $73,600, while a more important support level will be at $71,300. This coincides with the 0.618 Fibonacci level ($72,200).

🔍 The Path to Recovery is Full of Uncertainty

As of the time of writing, the price has begun to rebound slightly above the 0.382 Fibonacci level. If this trend continues, and the price can first return above the bottom of the wedge and then back above the major upward trend line, Bitcoin may have a chance to get back on track. However, if it is only a minor rebound followed by another fall, caution should be exercised regarding the test at the $73,000 mark.