Bitcoin slid below multiple support levels in quick succession, and the market reaction is doing what it always does after a technical shelf breaks. Sellers took control after BTC failed to reclaim the descending 200-day moving average and triggered a sharp sell-off.
The immediate consequence is structural. Crypto Potato points to the rejection from the descending 200-day moving average as the event that invalidated the prior rising channel structure. From there, BTC rolled back toward a major demand zone around $60K.
Daily chart: breakdown confirms buyers lost the intermediate trend
On the daily timeframe, Crypto Potato says Bitcoin confirmed a bearish breakdown after dropping below both an ascending channel and the 100-day moving average near $74K. The ascending channel had backed the recovery from February’s lows.
Then came the violation. The rejection reportedly happened near the confluence of the channel’s upper boundary and the descending 200-day moving average, around the $82K region. After that, BTC sliced through $74K support and also the late-May low near $65K with limited resistance.
Now BTC is testing a major support block at $60K. Crypto Potato frames this as the last major defense for bulls before the market “opens the door toward significantly lower levels.”
4-hour chart: $60K-$62K holding, but structure still looks bad
On the 4-hour chart, Crypto Potato describes an extended consolidation near $74K that failed to resolve upward. BTC did not reclaim $74K, then broke below the lower boundary of the daily ascending channel that had supported price action for months.
As the breakdown accelerated, the $65K support area gave way. That move pushed price into the $60K-$62K demand region. Crypto Potato says this zone is currently preventing further downside and has already drawn some buying interest.
A key nuance here comes from RSI. Crypto Potato notes RSI has formed a mild bullish divergence while price prints fresh local lows in “extremely oversold” conditions. The article warns the signal is early, but it could support a temporary rebound toward the $65K resistance zone.
Still, the structural read stays bearish. Crypto Potato highlights that the market continues to print lower highs and lower lows. It adds a clear condition for any recovery to matter: as long as BTC remains below the broken support levels at $65K and $74K, bounces are more likely corrective than the start of a new uptrend.
On-chain stress check: aSOPR falls below 1.0
Price charts tell you what traders did. On-chain data tells you what they paid for it.
Crypto Potato uses the Adjusted Spent Output Profit Ratio (aSOPR), which measures whether coins moved on-chain are being sold at a profit or loss. It reports that the 30-day EMA of aSOPR has fallen below the critical 1.0 threshold.
In this framework, Crypto Potato explains that readings above 1 imply holders are realizing profits on average. Values below 1 imply coins are being spent at a loss. The drop below 1 is described as coinciding with BTC’s decline toward the $60K area, suggesting capitulation among holders and deteriorating investor sentiment.
Crypto Potato also flags timing risk. Persistent sub-1 readings often accompany downtrends, but they can also show later stages of corrective phases as weaker hands exit. That’s why the article suggests watching whether aSOPR can reclaim 1.0. A return above 1 would indicate renewed profitability across the network, which could stabilize sentiment.
Key levels and signals to watch
| Area | What Crypto Potato reports | Why it matters |
|---|---|---|
| ~$82K | Rejection occurred near the channel upper boundary plus the descending 200-day moving average | Trigger for the sell-off that broke prior structure |
| ~$74K | Breakdown below ascending channel and 100-day moving average | Confirms loss of intermediate support |
| ~$65K | Late-May low breaks after $65K support fails | Removes the next shelf beneath $74K |
| $60K to $62K | Major demand region currently preventing further downside | “Last major defense” before direction shifts lower |
| aSOPR 30-day EMA below 1.0 | Coins spent at a loss, tied to capitulation | Signals worsening holder behavior, watch for reclaiming 1.0 |
| RSI mild bullish divergence | Present in extremely oversold conditions | Could support a temporary rebound, but structural trend remains down |
For now, Crypto Potato’s blend of chart structure and on-chain loss signals points to one thing: sellers still have leverage, and $60K-$62K is the battleground that decides whether the decline stalls or accelerates.