Bitcoin has dropped hard on Tuesday, as traders are running away from a lot of downward pressures on risk appetite, and Americans sold many markets beyond crypto.
Bitcoin has gotten hit hard during the trading session on Tuesday as the $64,000 level continues to be a major barrier. That being said, if we can break above that level it would obviously be a very bullish sign but as things are playing out right now, it certainly looks like we are going to have a major test of the $60,000 level underneath.
The $60,000 level is an area that I think a lot of people will be watching very closely as it is a large round psychologically significant figure and an area that I think a lot of traders will be looking at through the prism of whether or not traders are going to see whether the risk appetite picks up.
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As things stand right now, it's pretty bad and that could continue to work against the Bitcoin market. Interest rates dropping during the day and Bitcoin crashing is not a good sign. If the market were to turn around and take out that $64,000 level, we could grind our way towards the $72,000 level but right now, that doesn't look that likely. In fact, I think it could be some time before we attempt to make that move.
With this, I believe you have a situation where it's going to be difficult to trade. We could find buyers just below, but whether or not we can pick up momentum is a completely different scenario and quite frankly, we would probably need to see some type of major change in the overall risk parameters, and general attitude by traders not only in crypto, but other markets as well.
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