Bitcoin has dropped to the critical $70,000 psychological support, revisiting this level for the first time since November 2024. Following a massive sell-off in global tech stocks driven by fears over inflated AI valuations, risk sentiment has soured, dragging BTC down as the dollar strengthens.
In this video, we analyse the technical damage and explore two Elliott Wave scenarios that suggest a bounce is imminent—but the long-term implications differ significantly.
Key topics covered:
Critical levels to watch:
Support: $70k is the line in the sand. Below that, we look at $64k and the "Golden Pocket" at $52k-$55k.
Resistance: A bounce needs to clear $80k (previous support) and $98k-$100k to confirm a bullish reversal.
Are we seeing a bottom at $70k, or is this just Wave A of a larger crash? Let us know in the comments!
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
In this video, we analyse the technical damage and explore two Elliott Wave scenarios that suggest a bounce is imminent—but the long-term implications differ significantly.
Key topics covered:
- The trigger: How the route in Alphabet, Qualcomm, and ARM Holdings sparked a risk-off environment, pushing BTC to test the 50% retracement of the entire 2022-2025 bull run.
- The bullish structure (Flat pattern): We break down the potential "expanded flat" correction. If the current drop is a 5-wave impulse (Wave C), we may have just completed the structure. However, losing $70k opens the door to the 61.8% extension at $58k.
- With the daily RSI at 20 (levels not seen since August 2023) and price hitting a 2-standard-deviation channel support, an oversold bounce is probable.
- The bearish structure (Ending Diagonal): A rejection at $80k–$100k could confirm an Ending Diagonal, signalling a much deeper correction towards $40k later this year.
Critical levels to watch:
Support: $70k is the line in the sand. Below that, we look at $64k and the "Golden Pocket" at $52k-$55k.
Resistance: A bounce needs to clear $80k (previous support) and $98k-$100k to confirm a bullish reversal.
Are we seeing a bottom at $70k, or is this just Wave A of a larger crash? Let us know in the comments!
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.