Here's what's next for bitcoin after the cryptocurrency returned to $60,000 this week

Published Wed, Jun 26 20242:28 PM EDTUpdated Wed, Jun 26 20242:53 PM EDT

Bitcoin is testing a key level once again after the cryptocurrency fell below $60,000 this week for the first time since May 3. As of Tuesday afternoon, it was trading above $61,000, roughly 17% below its March record of $73,797.68, according to Coin Metrics. Chart analysts see no buy signals, however, and say it could take another leg down, which would be more "damaging" at current levels. "Moderation since March continues and trading can be considered under pressure below $66,000 resistance," the cryptocurrency's 50-day moving average, said Oppenheimer analyst Ari Wald. "There's key support at $57,500, the 200-day average, down to $56,500, the May low — and a downside breach would be damaging." Bitcoin has been largely stuck in a narrow range between $60,000 and $70,000 since the middle of March, when it reached its all-time high. It is currently suffering from a lack of near-term catalysts, low demand for bitcoin exchange-traded funds and miners' selling of bitcoin. BTC.CM= 6M mountain Bitcoin this year If bitcoin fails to hold $57,000, Wald added, $49,000 would become its next key downside level. For David Keller, chief market strategist at StockCharts.com, bitcoin's next levels down are similarly around $58,000, with potential downside to between $50,000 and $52,000. Keller noted that buyers often come in around $60,000. Additionally, he said, it is reasonable to expect the bitcoin price to bounce higher yet again as the cryptocurrency often finds support at big, round numbers. Tom Fitzpatrick of R.J. O'Brien identified major bitcoin support at $56,527 and a potential double top neckline, a bearish M-shaped chart formation made up of two peaks on either side of a moderate decline. "Below there would signal at least another 22% fall … and a possibility of as much as 29%," he said in a note to investors. Wald emphasized the strength of the current $57,500 support level and 200-day moving average, however. "The double-top [is] not completed until the neckline is breached," he said. Until then, "I always side with trend, meaning I'd assume the rising 200-day average holds. Bullish action in the NASDAQ-100 suggests risk tolerance remains positive, too." For the month, bitcoin is down nearly 10%. At the start of June, it briefly touched the $71,000 level but has been on a steady decline since.