Bitcoin declines below key averages, falls to $66K on bearish sentiment

New Delhi: Bitcoin slipped to around $66,000 after sustained bearish sentiment, breaching its 200-day and year-to-date averages—key technical levels that traders track for trend signals.

The breakdown points to near-term downside pressure, driven by global risk-off sentiment and tighter liquidity.

However, the decline has remained orderly, with prices stabilising in the mid-$60,000 range rather than triggering panic selling.

Analysts say the market is at a crucial juncture. While the breach of key supports warrants caution, expectations of a rebound towards $68,000 suggest underlying demand remains intact. Bitcoin continues to closely track broader financial conditions and investor risk appetite.

Recent sessions saw volatility after a period of steady gains, with prices briefly dipping amid weakness in global equities and tightening financial conditions, particularly in Asia, according to WazirX.

Easing geopolitical tensions, including possible talks between the US and Iran, led to a 5–6% fall in oil prices, helping stabilise risk assets, including cryptocurrencies.

Institutional interest remains strong. BlackRock has reiterated its focus on Bitcoin and Ethereum, while MicroStrategy continues to expand its Bitcoin holdings, underscoring long-term conviction.

Bitcoin has traded within a $50,000–$70,000 range for nearly two months, indicating an accumulation phase. While macro pressures are easing, sentiment remains fragile, with analysts warning of potential volatility and advising caution, especially on leveraged positions.