Bitcoin is currently trading around $66,891 on February 19, down 0.88% in the last 24 hours, as analysts warn that a deeper correction toward $62,600 could unfold if current support fails. Daily trading volume stands at $47.9 billion, with a market capitalization of $1.34 trillion, according to data from CoinMarketCap.
Bitcoin Hits $66,250, Faces Downside Risk
In a recent market update, crypto analyst More Crypto Online highlighted that Bitcoin has reached his target of $66,250 but may still face further falls. According to his Elliott Wave analysis, if support levels are broken, the price may no longer be supported by a short-term bullish pattern and may instead fall to the next level of support at $62,600.
Upside Momentum May Face Key Resistance
On higher time frames, analysts believe that Bitcoin may be establishing an ABC corrective pattern after its recent cycle high at approximately $126,000. The move down to $59,000 is seen as Wave A, with the current market action potentially establishing Wave B.
If buying pressure develops, resistance is likely to be found between $84,800 and $90,000, an area denoted by previous supply distribution. However, failure to break above this area could raise the likelihood of a Wave C move down, with technical models suggesting that the $34,000 to $30,000 area is a strong support zone over the longer term.
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Fibonacci Retracement Highlights Key Downside Range
Historical corrections in Bitcoin have seen the asset retreat by anywhere between 38.2% and 50% of the previous expansionary phase. Using Fibonacci retracement levels to analyze the current market cycle, the $32,000 area is seen as a statistically valid support area should selling pressure develop.
Analysts emphasize these levels are highly conditional and rely almost entirely on market liquidity, institutional outflows on exchanges such as CME futures markets, and overall macro sentiment.
For the time being, the $66,000 to $62,600 support area is the key area of focus. A strong close above this area could help to stabilize the short-term market structure, while a break below could further reinforce the corrective outlook.
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