The cryptocurrency market suffered a severe downturn over the past 24 hours, with approximately $230 billion wiped out from total market capitalization. Bitcoin briefly fell to $62,056, rallied to reclaim the $65,000 range, and is currently trading near $64,000, still down about 3.7% after the partial recovery. The initial drop was close to 7%.
The broader altcoin market followed Bitcoin lower. Ethereum declined nearly 10%, while BNB, XRP, and Solana dropped by 9.36%, 10.92%, and 11.79%, respectively. Despite the selloff, Bitcoin's brief recovery to $65,000 liquidated roughly $130 million in shorts, showing that a sharper rebound remains possible.
Analysts remain divided. Some argue that if Bitcoin's August bottom near $57,000 was genuine, the current cycle could still produce a deeper bear market bottom as early as December. One bullish analyst noted that a higher-low zone between $62,000 and $67,000 appears to have played out, and if it holds, Bitcoin could target above $100,000. However, a breakdown below $57,772 could open the door to $50,000 or even $40,000.
ETF analyst Eric Balchunas called the Nvidia-driven market selloff the “280th nervous breakdown,” arguing it is a recurring panic rather than a lasting trend change. He expects Bitcoin to form a base somewhere in the $60,000s, although he gave no timeframe. Bitcoin trades far below its 50-day and 200-day moving averages near $77,000 and $76,000, leaving a clear downtrend. It has fallen about 15% in the past week and 22% over the past month.
Momentum indicators remain weak. The RSI has dropped to around 20, deep in oversold territory, while the MACD remains below its signal line. Daily support sits near $62,000, with the next support around $59,000. The first major resistance stands near $75,000, just below both moving averages.
