Following a 5% drop on Tuesday,Bitcoin(CRYPTO: BTC) is down 0.3% to $61,680 on Wednesday afternoon, with analysts cautioning traders about potential further downside if key support levels don't hold.

What Happened: Alex Kuptsikevich, senior market analyst atFxProsaid a technical factor added to the selling: the day before, BTCUSD had fallen below its 200-day moving average, reinforcing the exit of 'weak hands' from the asset.

Experts are closely watching the $60,918 level, which represents the 21-week moving average.

According to a report, if Bitcoin trades below this level, traders should consider reducing their long positions.

The cryptocurrency market as a...