Bitcoin fell 4% on Friday, shedding about $2,600 to trade below $63,000. The move puts the cryptocurrency right on the bull market trendline, a level that has held for months. A close below it would open the door to $62,250, the next support on the daily chart.
Where the price is sitting
The drop isn't a flash crash — it's a steady grind lower that started earlier in the week. Bitcoin is now testing the trendline that has defined the uptrend since the start of the year. The weekly candle is sitting on that line, and the last four weekly candles have formed a bearish pattern: each red candle has fully enveloped the previous green one. That's a sign sellers are in control.
On the daily timeframe, the RSI is heading downward, which typically signals more downside ahead. But the indicator is also entering oversold territory. That combination can produce a fakeout bounce — a quick pop that lures buyers in before the slide resumes.
The levels that matter
If the trendline breaks, the first stop is $62,250. There's also support at $62,700, which could catch the price before it gets that far. Neither level looks particularly strong right now, but the oversold RSI might give buyers a reason to step in.
The key is the weekly close. If the current weekly candle closes below $63,000, the next weekly candle will open below the bull market trendline. That would be a structural break, and the chart suggests a move to new bear market lows could follow.
What a weak close would mean
A close below $63,000 isn't just a technical blip. It would flip the trendline from support to resistance, and the next weekly open would confirm the break. From there, the path of least resistance is down, with $62,250 as the first target and potentially lower if that fails.
The oversold condition is the one thing that could delay the breakdown. A bounce from here would be a relief, but it wouldn't change the bearish weekly structure unless the price reclaims $63,000 and holds it. That's the line in the sand for the weekend.
