Bitcoin Breaks Below Fibonacci Support... Will $60,000 Hold?

▲ Bitcoin (BTC) / ChatGPT-generated image

Bitcoin (BTC) is experiencing increasing downward pressure after breaking below a key Fibonacci support level. The cryptocurrency is currently at a critical crossroads between a dip-buying opportunity and the risk of further decline.

According to crypto-focused outlet U.Today on February 23 (local time), Bitcoin has slipped below $65,000, with short-term volatility reaching extreme levels. Institutional investors’ holdings, totaling approximately 1,762,272 BTC, are acting as a variable that could either support the market or further amplify volatility.

From a technical perspective, Bitcoin is showing clear bearish signals on the daily chart. Based on Fibonacci retracement analysis drawn from the recent high of $70,943 to the low of $59,998, Bitcoin has already broken below the key 0.5 Fibonacci level at $65,460. This breakdown is interpreted as a significant indicator that the downtrend is strengthening rather than representing a simple correction.

Currently, Bitcoin is hovering near a deeper support level at the 0.618 Fibonacci line of $64,166. If selling pressure continues without a strong rebound, the next major support zones lie at $62,300 or even the previous low of $59,977. Conversely, a meaningful recovery would require strong buying momentum to reclaim the 0.5 Fibonacci level at $65,460.

The Relative Strength Index (RSI) currently stands at 32.29, approaching oversold territory. While bearish momentum persists according to the indicator, a technical rebound cannot be ruled out if buyers step in aggressively. Analyst SuperBro suggested that the current price action may represent a strategic move to secure downside liquidity, adding that if the current bottom holds, a strong rally toward the $70,000 level could follow.

After a prolonged consolidation, the virtual asset market is once again facing a critical test. Pessimistic views predicting that Bitcoin could form a bear flag pattern and plunge below $50,000 are clashing with optimistic expectations of a rebound from key support levels. Investors should monitor whether the downtrend line is broken and whether major Fibonacci support levels hold to assess the market’s mid- to long-term direction.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.