The pressure on crypto has become its own. The break below $60,000 reflects continued outflows from U.S. spot Bitcoin ETFs, the Federal Reserve’s hawkish turn and a U.S. dollar that has soared to its highest level in seven months, Alex Kuptsikevich, chief market analyst at FxPro, said in an email to CoinDesk.
A stronger dollar makes dollar-valued assets like Bitcoin more expensive for foreign buyers and tends to draw money out of risky transactions.
FxPro also reported a longer-term warning. Bitcoin is near its 200-week moving average, the average price of the past four years or so, and a closely watched long-term trendline.
The last three times Bitcoin fell to this line, the weakness was prolonged rather than brief, lasting about nine months in 2015, six months in 2018, and about six quarters after the collapse in 2022. The company said the trend portends a crypto winter, a long period of depressed prices, rather than a rapid rebound.
For now, Kuptsikevich sees a band around $61,800 to $62,000 as his next test, a group of pending orders that could either push the price higher as short sellers are forced to buy back, or cap the rebound as resistance.
If support breaks, he said, $55,000 would be a plausible cyclical low. He urged traders to view risk management as a priority rather than following direction.
