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Why is Bitcoin down today? What traders need to know and prepare for

2min Read

Crypto analyst laid out a prediction that Bitcoin prices would fall toward $64.5k before moving above $68k.

Why is Bitcoin down today? Here's what traders need to know and prepare for
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  • Bitcoin has a bearish structure on the weekly chart.
  • The recent losses might be reversed next week, but it is unclear if the bulls can drive prices beyond $69k.

Bitcoin [BTC] prices fell by another 2.2% on Thursday, the 25th of July, and the daily trading session is not over yet. Since Monday, Bitcoin has fallen by 5.84%. The breakout past $60k was hailed as important, but it appeared the price could be headed toward it once again.

While Bitcoin does not need a reason or news event for prices to trend one way or another, the recent losses have a plausible reason. So, why is Bitcoin down today?

Liquidation levels indicate BTC might move toward $69k next week

In a post on X (formerly Twitter) crypto analyst CrypNuevo laid out a prediction that Bitcoin prices would fall toward $64.5k. This was because of the liquidity pool in this area on the lower timeframes.

It was likely to attract prices toward it, and his prediction has been right thus far. At press time, BTC was exchanging hands at $64.2k. He also predicted that it would bounce toward $68.9k.

Why is Bitcoin down today? Liquidation data

Source: Hyblock

AMBCrypto looked at the 7-day liquidation heatmap and observed that the $64k-$64.8k zone was a cluster of liquidation levels.

As the analyst had pointed out on the 21st of July, Sunday, a retracement to these levels in search of liquidity was feasible.

Why is Bitcoin down today? Liquidation data

Source: Hyblock

While that helps explain why Bitcoin is down today, AMBCrypto looked at the 1-month chart to understand where prices could go next. To the north, the $69k level was bright with liquidation levels and is likely to attract prices to it.

Disturbingly, the $52k and $46k levels also had a clump of liquidation levels. These levels could get denser over the coming days, making it more likely BTC would test them.

The weekly chart hints at a continuation

Bitcoin 1-week TradingView

Source: BTC/USDT on TradingView

In a post on X, Trader Mayne, a popular crypto trader, pointed out that the weekly structure was still bearish. It became bearish after the higher low from April at $56.5k was breached in early July.


Read Bitcoin’s [BTC] Price Prediction 2024-25


Meanwhile, the local high at $72k was not visited or broken in the 1-week timeframe, which indicated that a bearish swing might be in play. This could be bad news for long-term holders.

The Fibonacci retracement levels showed the $52k and $46k levels, which were also liquidity pools, were the 61.8% and 78.6% retracement levels.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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