Bitcoin Plunge Continues? Analysts Target $60K
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Bitcoin's recent sharp decline, which saw the cryptocurrency fall below $68,000 on Friday for the first time in nearly three months, may not be over, according to market analysts.
MissedBlock Desk · 3 min read
Bitcoin’s recent sharp decline, which saw the cryptocurrency fall below $68,000 on Friday for the first time in nearly three months, may not be over, according to market analysts. The digital asset experienced a further drop to under $67,000 on Saturday, a stark contrast to its peak of $81,000 just ten days prior.
Technical Indicators Signal Caution
Martin Lee, Market Insights Lead at DWF Labs, pointed to Bitcoin’s 50-week moving average, currently situated around $75,000. The cryptocurrency is on track to close beneath this significant technical level for the first time in eight weeks. Historically, a breach of this trend line has often preceded sustained rallies, while falling below it has signaled further downside.
However, Lee noted a key difference in the current market dynamic. Bitcoin did not surge excessively above the 50-week moving average before reversing, with its recent high reaching only $87,000 in September. This has kept Bitcoin relatively close to another critical technical support level: the 200-week moving average, which hovers around $68,000. This level has historically acted as a robust floor for long-term price stability. Lee contrasted this with November 2025, when Bitcoin lost its 50-week moving average near $100,000 and subsequently plunged towards $60,000 before finding comparable long-term support.
Bearish Sentiment Dominates On-Chain Data
Current on-chain data suggests a prevailing bearish sentiment. Within the past 24 hours, 52.2% of newly opened cryptocurrency futures and perpetual positions have been short, with only 47.8% being long. Activity in new Bitcoin options also reflects this bearish tilt, with put options accounting for 53% of trading flows.
If the $68,000 support level fails on a weekly basis, as it did on Friday, Lee anticipates the next significant downturn could drive Bitcoin down to $60,000.
Macroeconomic Factors and ETF Outflows Contribute to Decline
Lacie Zhang, Bitget Wallet Research Lead, echoed similar concerns, identifying several intermediate support levels before a potential drop to $60,000. She attributed the recent sell-off to a confluence of factors, including a broader aversion to risk in the macroeconomic environment, persistent outflows from spot Bitcoin Exchange-Traded Funds (ETFs), the unwinding of leveraged long positions, and weakness in technology stocks, compounded by the scandal surrounding Nvidia.
The release of hotter-than-expected inflation data for October further exacerbated the challenging landscape for risk-on assets. Headline inflation rose 0.4% month-over-month, exceeding the 0.3% forecast, while core inflation also surpassed expectations. These figures have contributed to Bitcoin’s downward pressure and increased the likelihood of a Federal Reserve interest rate hike in December.
Once Bitcoin fell below the $72,000-$73,000 region, forced selling intensified, leading to billions of dollars in liquidations over the past week.
Zhang identified $68,000 as immediate support, followed by $65,000 and $62,000 if selling pressure continues. As Lee pointed out, the $60,000 mark is now a realistic possibility, a scenario that seemed improbable just ten days ago when Bitcoin was trading above $80,000.