Bitcoin
is
testing
a
key
level
once
again
after
the
cryptocurrency
fell
below
$60,000
this
week
for
the
first
time
since
May
3.
As
of
Tuesday
afternoon,
it
was
trading
above
$61,000,
roughly
17%
below
its
March
record
of
$73,797.68,
according
to
Coin
Metrics.
Chart
analysts
see
no
buy
signals,
however,
and
say
it
could
take
another
leg
down,
which
would
be
more
“damaging”
at
current
levels.
“Moderation
since
March
continues
and
trading
can
be
considered
under
pressure
below
$66,000
resistance,”
the
cryptocurrency’s
50-day
moving
average,
said
Oppenheimer
analyst
Ari
Wald.
“There’s
key
support
at
$57,500,
the
200-day
average,
down
to
$56,500,
the
May
low
—
and
a
downside
breach
would
be
damaging.”
Bitcoin
has
been
largely
stuck
in
a
narrow
range
between
$60,000
and
$70,000
since
the
middle
of
March,
when
it
reached
its
all-time
high.
It
is
currently
suffering
from
a
lack
of
near-term
catalysts,
low
demand
for
bitcoin
exchange-traded
funds
and
miners’
selling
of
bitcoin.
BTC.CM=
6M
mountain
Bitcoin
this
year
If
bitcoin
fails
to
hold
$57,000,
Wald
added,
$49,000
would
become
its
next
key
downside
level.
For
David
Keller,
chief
market
strategist
at
StockCharts.com,
bitcoin’s
next
levels
down
are
similarly
around
$58,000,
with
potential
downside
to
between
$50,000
and
$52,000.
Keller
noted
that
buyers
often
come
in
around
$60,000.
Additionally,
he
said,
it
is
reasonable
to
expect
the
bitcoin
price
to
bounce
higher
yet
again
as
the
cryptocurrency
often
finds
support
at
big,
round
numbers.
Tom
Fitzpatrick
of
R.J.
O’Brien
identified
major
bitcoin
support
at
$56,527
and
a
potential
double
top
neckline,
a
bearish
M-shaped
chart
formation
made
up
of
two
peaks
on
either
side
of
a
moderate
decline.
“Below
there
would
signal
at
least
another
22%
fall
…
and
a
possibility
of
as
much
as
29%,”
he
said
in
a
note
to
investors.
Wald
emphasized
the
strength
of
the
current
$57,500
support
level
and
200-day
moving
average,
however.
“The
double-top
[is]
not
completed
until
the
neckline
is
breached,”
he
said.
Until
then,
“I
always
side
with
trend,
meaning
I’d
assume
the
rising
200-day
average
holds. Bullish
action
in
the
NASDAQ-100
suggests
risk
tolerance
remains
positive,
too.”
For
the
month,
bitcoin
is
down
nearly
10%.
At
the
start
of
June,
it
briefly
touched
the
$71,000
level
but
has
been
on
a
steady
decline
since.
