Bitcoin has been moving around $66,000 in recent transactions. The leading crypto asset, which recorded a 2.5 percent decline in the last 24 hours, is trading around an important trend line that could be decisive in the short term. Especially the rapid correction that occurred on February 22–23 and the subsequent voluminous transactions cause the current position of the price to be carefully monitored.
Technical Outlook and Trend Line
The downward channel that started at $70,800 on February 15 has dominated price formation for several weeks. In the following days, consecutive lower highs and increasingly higher lows were formed. Bitcoin, which dropped to $63,000 on February 23, is trying to hold on to the rising trend line starting from this point. As long as the price remains above this line, a higher bottom formation scenario remains valid from a technical perspective. However, if it closes below this line, a serious change in the outlook may occur.
Evaluation of Market Analyst GainMuse
GainMuse, known for its analysis in the cryptocurrency market, stated that Bitcoin showed a rapid recovery from the macro demand region in the last decline. He stated that in the retreat after February 25, high volumes reflecting the market panic atmosphere were not seen, indicating that buyers were still active.
GainMuse thinks that “as long as the rising support line remains on the price, the potential for movement towards the resistance area between $ 68,400-69,200 continues. However, in case of loss of the $ 64,800-65,000 level, it evaluates that the low levels of February 23 may be retested.”
Critical Support and Resistance Points
Just below it, there is an ascending trend support at $65,500. The $64,800 level is shown as an important threshold both in technical analysis and by analyst GainMuse. If there is a daily close below this level, the higher low formation is technically invalid. $63,000 is the main support, which was tested in the last decline and has shown resilience so far despite the high transaction volume. On the other hand, resistance points start with the range of $68,400–$68,800 and continue above up to $69,900 and $71,000.
Macro Data and Market Dynamics
Bitcoin’s position is shaped not only in technical terms but also in terms of macroeconomic developments. The recently announced US Producer Price Index data came above market expectations. This situation strengthens the perception that the US Federal Reserve will keep interest rates high for a long time, and puts pressure on risky assets.
Although the RSI indicator has not yet reached the oversold zone on a daily basis, it has fallen to the 40s. On the weekly chart, the loss of momentum has been continuing for several weeks. Additionally, the 50-day moving average is still well above current prices, and this level stands out as additional resistance in a possible rise.
Currently, the rising trend line is maintained. However, it seems that whether this level can be maintained in the coming days will be decisive in terms of the direction of the market.
