- Bitcoin is testing the $61,000 support as analysts warn another drop could follow if buyers lose control.
- A sharp fall in leveraged long positions has reduced market risk, leaving room for a healthier recovery.
- Ethereum is showing stronger momentum against Bitcoin, though key resistance still stands in the way.
Bitcoin came under renewed selling pressure at the start of the week, with analyst CrypNuevo warning that the market could weaken further if the price fails to hold above $61,000.
In a post on X, he said the recent drop may simply be a reset in market positioning but noted that the bearish outlook remains unless buyers defend that level. He also said Bitcoin needs to stay above its 4-hour 50-period exponential moving average to reduce the risk of further losses.
CrypNuevo’s latest chart showed Bitcoin losing momentum after failing to break through the $63,000 to $63,500 resistance zone. He initially thought that the price would move higher towards the middle of $64,000; however, this move was not able to reach this price level. At present, Bitcoin is below its short-term moving average, and traders are looking about whether or not $61,000 will hold.
Bitcoin Tests Critical Support
Technical charts show Bitcoin repeatedly facing selling pressure near the $63,000 resistance level, where several recent rallies have stalled. The 4-hour 50-period exponential moving average has also emerged as a key short-term indicator.
The $60,000 to $61,000 range is a closely watched support zone after buyers defended it several times in recent weeks. Traders are now monitoring whether that support holds. A successful defense could support another recovery attempt, while a sustained break below the range may point to further downside.
Liquidation Reset Reduces Market Risk
CrypNuevo’s liquidation heatmap also showed a sharp drop in leveraged long positions, with long liquidation exposure falling from about $14 billion to roughly $5 billion. The decline suggests much of the excess leverage has been cleared from the market.
The reset could leave Bitcoin on firmer footing if buying interest returns. Bitcoin would also need to reclaim the $62,500 to $63,000 range before another move toward $64,500 becomes more likely.
Ethereum Shows Stronger Momentum
Meanwhile, analyst Michaël van de Poppe said bearish divergences are no longer the dominant trend for Ethereum, arguing that buyers continue to build momentum despite broader market caution. In a post on X, he also pointed to Ethereum’s strongest weekly ETH/BTC candle in more than a year as a sign that the cryptocurrency is gaining relative strength against Bitcoin.
The analyst’s chart showed Ethereum has also formed a bullish divergence across multiple timeframes and moved above key short-term moving averages. The $1,750 to $1,800 resistance zone remains the next major level to watch before the recovery can extend.
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