Bitcoin could crash below key support level as resilience seems short-lived The crypto currency may head toward $55,000 if it breaks below support level at $73,745, analyst says

Bitcoin Could Crash Below Key Support Level as Resilience Seems Short-Lived

The crypto currency may head toward $55,000 if it breaks below support level at $73,745, analyst says

April 7, 2025
By Steven Orlowski, CFP, CNPR

Bitcoin's recent rally appears to be losing steam as the world's leading cryptocurrency hovers precariously above a key technical support level. Market analysts are warning that if Bitcoin decisively breaks below $73,745—a level widely watched by traders and institutional investors—it could trigger a significant selloff, potentially driving the price down to $55,000 in the coming weeks.

Bitcoin has struggled to maintain momentum after briefly touching $76,000 in late March, amid fading enthusiasm around spot Bitcoin ETFs and waning risk appetite across broader markets. Currently trading near $74,100, Bitcoin is down over 3% from last week and showing signs of weakening resilience.

“The $73,745 level is more than just psychological—it’s a structural support that has held during multiple retests,” said Daniel Koh, senior market strategist at Blockwave Capital. “If that floor gives way, we could see a swift move lower, with $55,000 as a likely target in the short to medium term.”

Koh noted that institutional flows into digital assets have tapered off in recent sessions, while retail demand appears to be retreating amid macroeconomic uncertainty, including rising Treasury yields and a stronger U.S. dollar. “There’s less conviction across the board right now,” he added.

Technical indicators also point to potential downside. The Relative Strength Index (RSI) for BTC/USD has dipped below 50, signaling weakening momentum, while the 20-day moving average has begun to flatten—a warning sign that the recent uptrend may be losing traction.

Some analysts are also concerned about profit-taking by long-term holders, who may be looking to lock in gains after Bitcoin's impressive run from under $30,000 just a year ago. “There’s evidence that some large wallets are distributing,” said crypto analyst Maria Ortiz. “That kind of activity often precedes more volatile price action.”

However, not all market participants are pessimistic. Some bulls argue that any pullback could be a healthy correction within a longer-term uptrend. “Even if we dip into the $60,000s or high $50,000s, the broader thesis remains intact,” said Alex Chen, head of research at Cypher Labs. “We’re still seeing growing interest from sovereign wealth funds and global institutions looking at Bitcoin as a strategic asset.”

Still, for short-term traders, the message is clear: the $73,745 level is the line in the sand. A break below could spark a sharp correction, and investors may want to brace for increased volatility.

As always in the crypto market, sentiment can shift rapidly. But for now, all eyes are on the charts—and whether Bitcoin’s current support can hold under pressure.