On Wednesday, Bitcoin price dipped below $59K amid signs of excess leverage in the market.
Accordingly, analysts explained that speculators had started to cut back their positions as the estimated leverage ratio nears a year-high.
Moreover, the most prominent digital asset sharply plummeted 6.35% to $58,768.91 per share with a 24-hour change of $3,983.94.
Additionally, it stands with a market capitalization of $1.11 trillion. It also holds a 24-hour volume of $1.84 billion with a $58,151.72 low and $63,064.00 high.
As of writing, the virtual currency struggles to cross the $60,800.00 and $61,000.00 resistance levels.
Correspondingly, the initial significant resistance is close to the $61,750.00 level and the 100 hourly simple moving average.
The 50.00% Fibonacci retracement level of the downward motion from the $63,700 high to $59,824 low is close to $61,800.00.
Remarkably, the main breakout resistance sat near the $62,000.00 level.
On the hourly chart, a crucial bearish trend line formed with resistance along with the $62,300.00.
Consequently, a push above the trend line resistance and $62,500.00 could lead the bitcoin again towards the $63,200.00 level.
Subsequently, the next major resistance sat beside the $64,000.00.
On the other hand, failure to surpass the $62,000.00 resistance zone would result in further downward movement. Then, the immediate support on the downside is at $60,000.00.
Furthermore, the first major support is at the $59,500.00 level. Any break below the $59,500.00 could pull the BTC to the $58,000.00 support zone.
Cryptocurrencies Slumped as Bitcoin Fell
Meanwhile, most of the altcoins traded red in the market, while Shiba Inu surged.
Similarly, Ethereum fluctuated 4.69% to $4,025.22 with a market capitalization of $472.79 billion and a 24-hour volume of $1.83 billion.
Likewise, Cardano plunged 8.44% to $1.99. It holds a market capitalization of $64.66 billion and a 24-hour volume of $332.39 billion.
Consequently, Bitcoin SV dwindled 9.01% to $156.88 with a market capitalization of $2.96 billion and a 24-hour volume of $235.60 million.
Also, Dogecoin dropped 10.91% to $0.24. It stands with a market capitalization of $31.57 billion and a 24-hour volume of $3.39 billion.
It is the same with Ripple’s XRP as it tumbled 8.04% to $1.03. It has a market capitalization of $102.60 billion and a 24-hour volume of $5.54 billion.
Conversely, Shiba Inu skyrocketed 23.90% to $0.000057 with a market capitalization of $33.92 billion and a 24-hour volume of $16.41 billion.