Bitcoin experiences increased bearish pressure following a breach of the critical $60,000 support level

Bitcoin dropped to its lowest point since February 27 on Wednesday as the downward trend continued for the third consecutive day. This decline was driven by diminishing expectations of imminent Fed rate cuts.

On Monday, Bitcoin broke and closed below the daily cloud base at 60,770, which aligns with the 38.2% Fibonacci retracement of the 38,501 to 73,839 range and the psychological support at $60,000. This created a strong bearish signal that will be reinforced by a close below the rising 100-day moving average at 59,106.

Bears are targeting the next key support level at 56,170, which marks the 50% retracement of the 38,501 to 73,839 range. If this support is breached, it could lead to a deeper decline.

A weekly close below the recent consolidation floor at around the $60,000 level would add to reversal signals and pause the larger bullish trend for a stronger correction.

A return and weekly close above the $60,000 level would negate immediate downside risks and suggest a potential false break lower.

Res: 59106; 60000; 60340; 61074

Sup: 56170; 54179; 53017; 52000