Cryptocurrencies are currently experiencing a downward trend, with a significant retreat happening in the afternoon. This pullback is affecting not only Bitcoin, but also other coins as well as the general risk assets market. In fact, Bitcoin has dropped over 17% since its peak in mid-March 2024 and has reached its lowest point in more than a week.

Looking at the H4 chart for Bitcoin, we can see that the coin has been trading mostly sideways since the beginning of March 2024. Although it reached a high of $73,000 on March 14, 2024, it has been stuck in a range between $60,000-72,500. The recent pullback in risk assets has caused Bitcoin to reach the lower end of this range, briefly dropping below $60,000 on March 5, 2024. This level not only has a psychological impact, but it also marks a 38.2% return on the upward momentum that started in late January 2024.

If Bitcoin breaks below this $60,000 support level, we may see a further decline towards the textbook target of $47,500. This level has not been seen since the beginning of February. However, the bears’ first attempt to push the coin’s price below $60,000 was unsuccessful, resulting in a slight bounce off this support level.

(source: xStation5)