- Bitcoin has broken below the $75,000 support level amid growing bearish pressure.
- BTC could expand toward $79,500 if buyers succeed in defending the crucial zone.
- Prices could reverse upward when Bitcoin flows turn around, and the price stops dropping.
Bitcoin succumbed to bearish pressure early this week, slipping into a critical support zone. The cryptocurrency has broken below the crucial $75,000 support level, trading at $73,354 at the time of writing, according to data from TradingView.
Bitcoin is Consolidating in a Crucial Area
Renowned cryptocurrency analyst Ali Martinez considers this development critical for the crypto market. In his latest post on X, Martinez stated that Bitcoin is currently consolidating at the lower boundary of an ascending channel that has guided the digital asset since February.
Referencing a screenshot of his technical analysis, Martinez noted that the channel floor aligns with both the 100-day SMA and the 23.6% Fibonacci retracement level on Bitcoin’s daily chart, increasing the zone’s significance in the scheme of things.
In the meantime, the analyst identified a BTC volume cluster between $73,000 and $71,300, which serves as a major structural floor for the price. According to him, the cryptocurrency could experience a steady expansion back toward $77,000 or even $79,500 if buyers succeed in defending that zone.
However, breaking below $71,300 might fully flush out short-term speculative leverage. A situation Martinez believes would open the door to an extended value window near the February base of $60,000.
Related: Bitcoin Falls Below $73,000 as Iran Conflict Sparks Market Liquidations
ETF Outflows Are Putting BTC Under Pressure
From a fundamental perspective, a pseudo-anonymous crypto trader known as Dean Crypto on X noted that Bitcoin has seen $3.5 billion in outflows from its spot ETFs in the past two weeks. He further noted a pause in Strategy’s BTC purchases, aligning those signals with the cryptocurrency’s 10% selloff.
According to Dean, the right time to pay close attention to Bitcoin’s behavior is when the flows turn around, or when the price stops going down while outflows continue. For instance, he noted that a few big outflow days with prices going up would signify at least some local reversal.
In the meantime, it is worth noting that Bitcoin’s price has declined by over 12.3% since reaching a local high of $82,833 in the first week of May. The cryptocurrency currently trades around its mid-April prices, in a zone that could determine its next immediate direction.
Связанный: Эскалация между США и Ираном потрясла криптовалюту, поскольку уходы из биткоина ETF углубляются
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