Introduction:

As investors chase higher peaks, Bitcoin took a nosedive, slipping below $65,000 once more with a daily loss exceeding 3%. This decline not only spells trouble for alternative cryptocurrencies but also swiftly wiped out recent gains. Now, the focus shifts to whether key support levels will hold or crumble, shaping Bitcoin's next move.

Bitcoin's Current Situation:

Right now, Bitcoin is valued at $65,000. Despite attempts at recovery following yesterday's setback, it's struggling to reach new highs, signaling waning investor enthusiasm. Below $60,000, Bitcoin sees strong demand but struggles to break past the $67,300 barrier. The upcoming release of PCE data on Friday might serve as a catalyst for a breakthrough. However, if the data disappoints, hopes for inflation may rise, potentially delaying the first rate cut until September.

Predictions and Analysis:

Currently, historical data isn't providing clear guidance. While there hasn't been a sharp decline due to halving, mounting geopolitical tensions and global economic concerns are adding pressure. Additionally, the volume of spot Bitcoin ETFs in March pales in comparison to previous levels. This raises the possibility that the substantial first-quarter surge was simply an early response to the halving.

Looking ahead, investors are advised to proceed with caution, especially concerning altcoins. The recent drop in Bitcoin's price to $64,732 explains the lack of significant gains in alternative cryptocurrencies. If ETF investors continue to exit, Bitcoin may seek new lows by the end of the day.

Short-Term Predictions:

In the short term, closures below $61,200 could trigger support levels at $59,700 and $57,000. A more significant sell-off could result in a plunge to $51,170, representing a roughly 20% drop. Altcoins could be even more severely affected, potentially experiencing a 50% downturn.

On the flip side, closures above $67,300 could pave the way for a renewed push towards $69,700 and $71,300. This would reignite discussions about targets such as $73,777 and $76,000.

Conclusion:

The Bitcoin market remains volatile, with its trajectory hinging on various factors, including economic data releases and investor sentiment. While there are predictions for both upward and downward movements, caution is advised as the cryptocurrency landscape continues to evolve.