Warning Bitcoin could experience further capitulation if this level is not maintained

Bitcoin’s price has dropped below $66,000, leading analysts to predict further losses in the near future. Trading expert TradingShot highlighted the importance of Bitcoin’s interaction with the 50-day moving average (1D MA50), which had previously acted as support at around $66,100. Failure to reclaim this level as support could result in a drop to $61,000, with potential further declines to $56,000 near the 1D MA200.

The expert emphasized the significance of the 1D MA50 as a support level, suggesting that Bitcoin’s daily closures above it could signal a bullish trend aiming for $72,000. However, in the short term, Bitcoin struggled to maintain levels above $65,000, falling to a monthly low of around $64,000 due to short-term bearish momentum.

Volatility in Bitcoin’s price has been exacerbated by outflows from a US-based exchange-traded fund and political uncertainty in France. This has led to a strengthening of the dollar, historically pressuring Bitcoin’s price and diverting its trajectory from reaching $70,000.

On-chain data from Santiment indicates increased volatility in Bitcoin, with exchange inflows and outflows surging significantly. This suggests that more investors are transferring Bitcoin to exchanges, possibly in anticipation of selling during the bearish trend.

Currently, Bitcoin is trading at $65,160, down 0.5% on the daily chart and declining by over 2% in the past week. With support lost at $66,000, the focus is now on the bulls to influence the price amidst a bearish market. Investors should be cautious and aware of the risks involved in trading and investing in cryptocurrencies.