Bitcoin – Near-Term Sentiment Sours Following 3% Drop Early Tuesday

Bitcoin dropped 3% in early Tuesday’s sharp selloff, signaling the continuation of a bear-leg from the June 7 peak of 71,929.

Fresh bearish sentiment emerged after a mild recovery was repeatedly capped by the psychological 70K barrier. This drop marks the biggest daily loss since May 1.

The price hit a two-week low, breaching initial Fibonacci support at 68,270 (23.6% of the 56,427/71,929 range) and completing a failure swing pattern on the daily chart, which generated a bearish signal.

The momentum indicator (14-day) broke into negative territory, and the price slid below the 10-day and 20-day moving averages, weakening the near-term structure. Additionally, Friday’s twist of the daily cloud is expected to attract further bearish action.

Bears are eyeing the 100-day moving average (66,529), which guards the pivotal 66K support zone (a higher base and 38.2% Fibonacci retracement). A loss of this level would generate a reversal signal and spark further weakness.

Near-term action should remain capped by the broken Fibonacci level at 68,270 and the broken daily Kijun-sen at 68,512 to maintain the bearish near-term bias.

Res: 68062; 68270; 68512; 69642
Sup: 66533; 66529; 66000; 65701