Will Bitcoin's $64,000 Support Level Break? Is the Next Downside Target $40,000?

▲ Michael Burry’s warning… The myth of Bitcoin as a safe-haven asset collapses / ChatGPT-generated image ©

As Bitcoin (BTC) remains trapped in a downward channel while seeking direction, two key price levels that could determine the market’s future are drawing intense attention from investors. In the short term, whether the cryptocurrency can break above $64,000 or $67,000 is expected to serve as a critical turning point, deciding whether it falls into a deeper slump or enters a new bull market.

According to cryptocurrency outlet Finbold on February 13 (local time), prominent on-chain analyst Ali Martinez stated on social media that Bitcoin is currently moving sideways within a descending channel. He identified $64,000 as the key support level and $67,000 as the major resistance level investors should watch. If the price touches either of these levels and then returns to its current range, it would signal confirmation that the downtrend is likely to continue.

Conversely, if Bitcoin decisively breaks through the $67,000 resistance level, the prolonged bearish market could come to an end and reignite bullish projections made by major institutions such as Bernstein and Standard Chartered. However, failure to overcome resistance followed by a سقوط below support could trigger another chain reaction of declines across the broader cryptocurrency market. In that scenario, prices could plunge to $50,000 as previously forecast by Martinez, or even to $41,000 as warned by “Big Short” investor Michael Burry.

The cryptocurrency market has shown a clear downward trend in February, with an average of $30 billion in market capitalization evaporating daily, amounting to a total loss of $400 billion. Losses were particularly concentrated between January 29 and February 1, and again between February 4 and 6, when $400 billion and $200 billion were wiped out respectively.

Nevertheless, the price action of this asset class has also demonstrated the relative strength of key support levels. On February 4 and 5, and again on February 12, whenever the total market capitalization and Bitcoin price experienced sharp declines, swift upward corrections followed, preventing a complete market collapse.

Despite widespread fear among traders, several major institutions argue that predictions of an early-2026 bear market lack solid foundations. While many veteran traders draw pessimistic comparisons between the current trajectory and past cycles, analysts at firms such as Bernstein contend that the market landscape has fundamentally changed due to shifts in the regulatory environment, increased institutional adoption, and the approval of spot exchange-traded funds (ETFs), making it unwise to forecast the future solely based on the past.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on its content. The information provided should be interpreted for informational purposes only.