 ▲ Bitcoin (BTC) |
Bitcoin (BTC) is facing renewed downward pressure after slipping below the key support level of $66,500.
According to CoinMarketCap on February 27 (local time), Bitcoin traded at $67,459, down 2.17% over the past 24 hours. The total cryptocurrency market capitalization also fell 2.45% during the same period, reflecting broad weakness. Bitcoin recorded a 24-hour correlation coefficient of 91.9% with the S&P 500, moving almost in lockstep with traditional risk assets.
The primary driver of the decline appears to be a technical breakdown. The price attempted to hold near $66,572, the 78.6% Fibonacci retracement level, but failed to defend the support. Twenty-four-hour trading volume fell 10.88% to $46.03 billion, indicating weak buying support. The relative strength index (RSI) stood at 42.42, confirming short-term bearish momentum. As the market failed to maintain a historically significant support zone, selling pressure intensified.
At the same time, the macro environment has added to the burden. Bitcoin’s 2.17% drop mirrored the broader market decline, suggesting synchronized risk-off sentiment rather than asset-specific negative news. The high correlation with traditional assets indicates that Bitcoin is currently trading more like a high-beta risk asset sensitive to macro flows, rather than on independent fundamentals.
A key short-term variable is the U.S. Senate’s discussion of cryptocurrency-related legislation. With a Senate debate scheduled for 2:30 p.m. Eastern Time on February 27, the market is searching for direction. If Bitcoin holds the $66,572 support level, it could continue consolidating within a range of $66,572 to $68,400. However, if that support clearly breaks down, the door opens for further downside toward the recent swing low of $60,074.
The Fear and Greed Index registered 16, indicating “Extreme Fear.” The market remains in a fragile balance ahead of both a technical inflection point and a regulatory event. The key lies in defending the $66,572 level. A breakdown could trigger additional liquidations, while a recovery above $68,400 may invalidate the short-term bearish structure.
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