Why did Bitcoin plunge to $74,000 today?

Why Did Bitcoin Stumble This Weekend?

The crypto market experienced a particularly tense session. The price of Bitcoin dropped to test critical support levels, brushing against $74,000, a major psychological threshold. This sharp movement is primarily explained by low liquidity in the order books, typical of weekend periods when institutional volumes are absent. In this context, the slightest massive sell order can trigger disproportionate price swings, exacerbating trader nervousness.

In the background, economic data from China failed to reassure the markets. Manufacturing activity figures showed only moderate growth, offering limited support to risk assets. Meanwhile, the strength of the US dollar continues to weigh on the BTC/USD pair, limiting any potential for explosive short-term gains for now. Currently, Bitcoin is trading around $76,200, attempting to consolidate its position in a crucial demand zone. Additionally, the shutdown and Bitcoin’s implications in the Epstein case are not good news either for BTC and cryptos.

Technical Analysis: Is the $74,000 Support Solid?

From a technical perspective, the defense of the $74,000 level is an encouraging signal for the bulls. This threshold acts as an immediate barrier against a drop toward the $70,000 zone. The rapid rebound above $75,000 suggests there is still latent demand at these price levels, ready to “buy the dip”. However, the market structure remains fragile as long as BTC fails to break free from its immediate resistances.

Momentum indicators, such as the RSI, show that selling pressure could be waning, but caution remains warranted. The $78,000 – $84,000 zone now constitutes a major resistance. To validate a resumption of the bullish trend, Bitcoin will absolutely need to close above the resistance block between $80,000 and $84,000 with volume. Conversely, a new break below $74,000 could trigger a cascade of liquidations toward $67,000.

Scenarios: Can Bitcoin Explode Again?

According to trader Killa, a “bearish retest” is in preparation. This means Bitcoin could retest $80k this week before continuing its decline. Indeed, according to him, BTC has not yet found its bottom.

The same sentiment from DrProfit who believes Bitcoin can still drop toward $60k, or even $56k this year.

Indeed, despite this crucial support that could enable a short-term rebound, indicators such as the loss of the MA100 or the downward break of the Ichimoku cloud on the weekly chart are concerning.

The current situation demands extreme vigilance. While the technical rebound is visible, weak volumes and the uncertain macroeconomic context (China, Dollar) call for caution. The market is on a knife’s edge, and the next directional impulse could be violent. 

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