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The ongoing downtrend in Bitcoin price intensified on Tuesday as the leading digital asset plunged below $61,000. Concurrently, the native asset of the biggest smart contract platform, Ethereum (ETH), also dropped 6.25% and stood at $3,015 at press time. The slump in the pioneering digital assets also caused the altcoin investors to capitulate.
At the time of writing, BTC was trading at $61,226 on the crypto exchanges after finding some support at the intraday low of $60,737. The outlook on the most valuable cryptocurrency appears to have turned bearish after a failed breakout attempt beyond $67,200.
On Tuesday, Bitcoin retested the Monday lows as the price fell to $61,765. However, the level failed to provide any significant support, and the price continued its descent. This level might become critical in case of a recovery from the current levels.
In a landmark feat for the Asian financial markets, the recently approved spot Bitcoin and Ethereum ETFs debuted in Hong Kong on Tuesday. The data at the end of the day revealed significant interest in the newly launched products. One of the issuers, China AMC, reported $141 million in assets, with a 14% share of ETH and the rest belonging to Bitcoin.
Considering the price action on the 4-hour timeframe, BTC/USD is gravitating toward the monthly lows around $59,600. This will be a very critical retest, as a breakdown could unlock a massive downside for not just Bitcoin but the whole crypto market.
Nevertheless, the 4-hour chart points toward the possibility of a bounce from the current level. The bullish divergences on relative strength index (RSI) and money flow index (MFI) back this outlook. However, a breakdown below $60,000 support will flip the Bitcoin price prediction bearish on the daily timeframe.
The ETH/USD pair fell below the critical $3,000 level on Tuesday. A 4-hour candle closure below $3,066 support gave the coin a bearish outlook, putting another retest of the $2,852 level on the cards. There is also a strong possibility of a deeper pullback below $2,687, where lies a significant demand zone, as shown in the chart below.
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