Bitcoin experienced a sharp decline on Monday morning, dropping 3% from $66,000 to $62,000, marking a two-month low. The sell-off was reportedly driven by a confluence of factors, including a drop in the Nikkei index from an all-time high and a wave of leverage flushes. The total cryptocurrency market capitalization fell nearly 3% in tandem, indicating broad-based pressure.
Despite the downturn, derivatives data from Coinglass showed a notable shift in trader sentiment. Over the past hour, long positions accounted for 51.15% of taker volume, compared to 48.85% for shorts. This suggests growing dip-buying interest, though it remains uncertain whether traders are correctly anticipating a rebound or 'catching a falling knife.'
Technical analysis highlights the $62,000 level as critical support, with a clean break below potentially triggering mechanical selling from short-gamma positions. Immediate support lies at $60,000, with an order-block zone between $59,500 and $61,000 providing the next structural floor. A bearish RSI divergence on the 4-hour chart points to a likely retest of sub-$62,000 before any sustained upward move. If Bitcoin can hold $62,000 and spot ETF flows turn positive, a grind toward $64,350–$66,000 resistance is possible.
Separately, crypto trader Yoddha noted that Bitcoin is testing a major long-term level near its 2024 halving price of approximately $65,567. The two-week chart shows a bearish change-of-character after breaking below an ascending channel from $110,000–$120,000, with a projected decline target near $65,000. Yoddha’s preferred accumulation zone is much lower, around $38,500, suggesting a major decline could offer a buying opportunity before the 2028 halving.
Analyst Kaz offered a more immediate bearish perspective, pointing to a rejection at the $65,500–$66,200 resistance zone. The first downside target is $62,300, the previous weekly low. Below that, a liquidity sweep could push Bitcoin into the low $50,000s if $60,000 breaks. Kaz’s primary swing-trade target is in that lower region, though a decisive break above resistance would invalidate the bearish setup.
Macro catalysts such as CPI prints, Federal Reserve commentary, and regulatory developments remain external variables that could override technical setups.
