Bitcoin Slumps Amid Macroeconomic Sell-Off, Will It Hold the Final Support at $60,074?

▲ The crypto market shaken alongside the shock in the New York stock market… Will Bitcoin fall below $60,000?/ChatGPT-generated image ©

Amid strong synchronization with the U.S. stock market, Bitcoin (BTC), the market leader, has continued its relentless decline, surrendering even the $64,000 level. With no clear asset-specific negative news, massive macro-driven sell-offs combined with the breakdown of key technical support levels have plunged the market into uncontrollable extreme fear.

According to CoinMarketCap on February 24 (local time), Bitcoin was trading at $63,189.79, down 3.24% over the past 24 hours, struggling to regain footing. The total cryptocurrency market capitalization also shrank by 2.55%, signaling a broader downturn in risk assets. The core driver of the decline is widespread selling pressure in tandem with weakness in traditional equity markets. Bitcoin has shown a high correlation of 0.88 with the SPDR S&P 500 ETF, exposing its limitations as a risk asset dependent on macroeconomic trends rather than an independent safe haven.

Technical indicators and trading volume further reinforce the downward pressure. Bitcoin has fallen below both the 7-day simple moving average of $67,023 and the 30-day simple moving average of $73,170, cementing a clear bearish structure. Notably, 24-hour trading volume surged 40% to $45.62 billion, confirming intense selling pressure in the market. The 14-day Relative Strength Index (RSI) has entered oversold territory at 31.68, though not yet at extreme levels, leaving the market at a crossroads between a short-term technical rebound and further downside.

With no clear bullish catalyst in sight, investors are focusing on whether key support levels can hold. The immediate support stands near $60,074, close to the recent low. If this level is defended, a consolidation phase between $60,074 and $67,023 could form. However, if this support collapses, there is a risk of a sharp drop toward the $55,000 to $58,000 range. For a trend reversal, Bitcoin must at least close above the 7-day moving average of $67,023 or decisively reclaim the 78.6% Fibonacci retracement level at $66,572.

The current Fear and Greed Index stands at 11, indicating extreme fear. Ultimately, the present downturn represents a perfect storm created by synchronized macro asset sell-offs combined with technical breakdowns and a surge in trading volume. Market tension is at its peak as investors watch whether Bitcoin can defend the $60,074 support level and halt the cascade of liquidations, or plunge into deeper depths.

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