Bitcoin Flash Crash to $66K, What’s Behind the Sudden Reversal?

• Bitcoin plunges 8% to $66,045, leading a broader crypto market correction, with top altcoins dropping 6-12%.
• The global crypto market witnessed over $500 million in liquidations in the last 24 hours.

Bitcoin (BTC) experienced a significant downturn today, plunging to a 10-day low of $66,045, marking an 8% decrease in value. This decline triggered a broader correction across the cryptocurrency market, with the top ten altcoins also witnessing corrections ranging from 6% to 12%. Also, the global crypto market has seen a 6% drop in its market cap of $2.5 trillion over the past few hours.

Bitcoin (BTC) Price Chart (Source: CoinMarketCap)

The correction led to over $500 million in liquidations across the crypto market, with $413 million from long positions and $85 million from short positions, according to data from Coinglass. Bitcoin alone accounted for $138 million in liquidations, underscoring the market-wide impact of the downturn.

Will BTC Test $60K Support Before the Halving?

Bitcoin struggled to maintain its position above the critical $70,000 resistance level and began its descent after breaching the $67,500 support zone. The decline continued below $66,800 and ultimately breached the $66,300 mark, reaching a low of $66,045 before stabilizing.

Currently, BTC is trading below $67,000 ($66,882), and the 100 hourly simple moving average, BTC faces a key resistance trendline of around $67,300 against the USD. If the trend reverses, the immediate resistance lies near $67,500, with a further climb towards $67,900 and $68,600. A clear breakthrough above $68,800 could signal a bullish trend, potentially leading to a push toward the $70,000 zone.

However, failure to overcome the $67,000 resistance could prolong the downtrend. Initial support rests at $66,200, followed by major support levels at $65,500 and $65,100. A breach below $64,800 might trigger a more significant decline, with the possibility of BTC dropping toward $62,500.