Bitcoin Price Prediction: Potential Downside Risk as $60,000 Support Level is Tested

Bitcoin is currently experiencing a 16% sell-off this month that is testing a key support level at around $60,000. This support level is further bolstered by Bitcoin’s 200-day moving average of just under $58,000. If the price breaks below $60,000, it could potentially lead to a 15% decline to the next support level at $51,500.

The steady decline in bitcoin has experts concerned as it could trigger a more significant sell-off. Bitcoin dropped 4% on Monday and has fallen by 16% since reaching a high in early June. According to Fairlead Strategies founder Katie Stockton, $60,000 is a critical support level for bitcoin. However, if it fails to hold, a drop below $60,000 could signal a further decline to $51,500.

Stockton emphasized that the 200-day moving average provides additional significance to the support level. Currently situated below $58,000, this moving average could play a crucial role in determining bitcoin’s price trajectory. No “Buy” signals have emerged at this time, and Stockton suggests waiting for support discovery if a breakdown occurs.

If bitcoin continues to decline and reaches $51,500, it would represent a potential 15% downside from current levels and a 30% drop from its previous record high. The recent sell-off in bitcoin has also raised concerns for the broader stock market, with Stifel strategist Barry Bannister pointing out that weakening bitcoin prices could foreshadow a summer correction and consolidation phase for the S&P 500.