Bitcoin remains under pressure and approaches a crucial support zone, with investors watching FOMC and NFP reports for new signals on direction

Bitcoin dropped 2.5% on Monday, maintaining a weak near-term outlook as the extension of the bear-leg from the April 23 lower top at 67,264 brings the key 60,000 support zone into focus.

A cluster of strong supports between 60,700 (daily cloud base), 60,340 (Fibo 38.2% retracement of 38,501/73,839), and the psychological level of 60,000 creates a critical breakpoint. A loss at this level could trigger a reversal signal and prompt a deeper correction in the uptrend from 38,501 to 73,839, with the next target being the 56,000 zone (50% retracement).

Technical indicators on the daily chart are weakening as the 14-day momentum shifts to negative territory and the 10/20/55 moving averages show a bearish setup.

However, the oversold conditions might provide support around the strong 60,000 zone.

The market’s focus is on the Federal Reserve’s rate decision and US labor data as key economic events this week, which are expected to guide fresh directional trends.

Repeated failure to break the 60,000 support level clearly could keep Bitcoin in an extended range but with heightened downside risk while below the converged 10/20DMAs at 64,500.

Only a sustained break above the 55DMA at 66,920 would disrupt the bearish momentum.

Res: 64000; 64500; 65950; 66920

Sup: 61000; 60700; 60340; 60000