Bitcoin has once again come under intense selling pressure following the bearish breakdown of its flag formation on the technical charts. According to CoinGecko data, the leading cryptocurrency is currently trading at $66,767, marking a 1.87 percent decline in the past 24 hours and a staggering 10.85 percent drop over the last week. In the wake of this move, analysts have shifted their focus to critical short-term support zones.
The $42,000 zone back in the spotlight
An analyst known in the market as CryptoCon noted on social media that, according to the volume profile, the next significant support area sits between $38,000 and $43,000, following the breakdown of the recent formation. This range aligns with cycle bottoms indicated by both the Realized Market Cap and Golden Ratio Multiplier models.
Mini glossary: The volume profile is a market tool that shows how much trading occurs at certain price levels. Realized Market Cap tracks the value of Bitcoin based on the prices at which coins last moved, offering an alternative to traditional market capitalization.
CryptoCon emphasized that the $38,000 to $43,000 region is the next major support, spotlighting $42,000 as the most probable key stop for Bitcoin.
The analyst further noted that trading volume in this region is weaker compared to current price levels. Below this, a stronger support bloc exists from $25,000 to $30,000, in line with the Magic Bands and Bear Bands bottom targets. He added, however, that according to the Halving Cycles Theory, a confirmed bottom is not expected until year’s end.
| Indicator | Level |
|---|---|
| Initial key support | $38,000 to $43,000 |
| Highlighted main stop | $42,000 |
| Lower support bloc | $25,000 to $30,000 |
$66,000 to $67,000 described as pivotal threshold
Trader That Martini Guy identified the $66,000 to $67,000 zone as the main area where the current correction structure ends and buyers recently began showing up in force for the first time in weeks. According to him, this region also matches a large volume node on the price chart, reflecting substantial trading activity.
Bitcoin is hovering just above the level that truly matters. Should the $66,000 to $67,000 area hold, the price could return to a high-volume, high-liquidity range.
He warned, though, that losing this level could lead to a swifter breakdown, as the structure below is relatively fragile. Still, he refrained from declaring any definitive bottom at present. The trader also stressed that, following a sharp $15,000 drop, the primary question is whether Bitcoin can defend its first major support area.
Capital rotation debate gains traction
Another hot topic among market commentators is whether this latest selling pressure is driven solely by technical factors. The analyst Wise Advice pointed out that despite Bitcoin falling from $74,000 to $65,500 in just 48 hours, this move was not accompanied by a major ETF panic, stock market melt-down, or a clear global shock. Still, the persistent selloff has fueled speculation that some investors are reallocating capital elsewhere.
According to this viewpoint, the coming months may see major funding rounds for artificial intelligence ventures intensifying competition for liquidity in the market. Examples cited include approximately $75 billion potentially for SpaceX, nearly $100 billion for OpenAI, over $100 billion for Anthropic, and about $80 billion for Google—adding up to more than $350 billion in projected deal value.
Mini glossary: Capital rotation refers to reallocating investment from one asset class into another. Anthropic is a technology firm specializing in artificial intelligence, gaining attention recently for headline-grabbing valuations.
Wise Advice noted that the investors driving money into Bitcoin—ranging from tech investors to growth funds, venture capital, family offices, and macro funds—often overlap with those interested in the AI sector. Consequently, some investors, who saw Bitcoin as an indirect artificial intelligence theme over the past two years, may have switched directly to AI projects. He characterized this not as a long-term negative for Bitcoin, but suggested that in the short term, the stiffest competition for Bitcoin may come from new waves of AI funding, and not from bonds or gold.
