Bitcoin is closing in on a fifth consecutive weekly decline, with price action hovering dangerously near a key support zone that could dictate the next directional move.
After trading in a narrow range early Wednesday, BTC lost momentum during the U.S. session, falling below $66,000 and pressing against the lower end of its recent consolidation band. The cryptocurrency had climbed to roughly $68,500 overnight but slid about 2.5% over the past 24 hours, last changing hands near $66,200.
Crypto-related equities followed the downturn. Coinbase reversed a 3% morning gain to trade about 2% lower by afternoon. MicroStrategy (MSTR), the largest public corporate holder of bitcoin, dropped around 3% as weakness in the digital asset weighed on sentiment.
Broader U.S. markets also surrendered early gains ahead of the close. Investors digested minutes from the January meeting of the Federal Open Market Committee, which struck a firmer tone than anticipated. While policymakers agreed to keep rates steady, several officials favored adopting “two-sided” guidance, signaling the central bank could still consider raising rates if inflation remains stubborn.
The dollar strengthened further in response. The U.S. Dollar Index rose to its highest level in nearly two weeks, adding pressure to risk assets. A stronger greenback typically weighs on cryptocurrencies, and Wednesday’s pullback appeared consistent with that dynamic.
With the latest slide, bitcoin faces a pivotal test around $66,000 — a level that previously acted as support and helped fuel a rebound above $70,000. A decisive breakdown could redirect focus toward the early February lows near $60,000 and potentially mark the start of a deeper correction.
