Bitcoin’s price is challenging as it trades below critical resistance levels, indicating a bearish trend in the cryptocurrency market. The BTC/USD pair is below $29,500 and the 100 hourly Simple Moving Average, resulting in a fresh decline in value.
The recent downward movement saw a significant break below a major bullish trend line with support near $29,700 on the hourly chart of the BTC/USD pair, fueling concerns among traders and investors. The pair’s decline could extend toward the crucial $28,200 support zone.
In a substantial development, Bitcoin’s price settled below the $30,000 support zone, signaling the beginning of a bearish trend. The key $29,650 support zone was also breached, leading to further losses for the cryptocurrency.
The current scenario calls for caution and vigilance among market participants. Besides, with the breach of a crucial support level, the BTC/USD pair faces an uphill battle to regain momentum. The immediate resistance lies near the $29,250 level, representing a 23.6% Fibonacci retracement level of the recent decline from the $30,333 swing high to the $28,880 low.
Furthermore, the first significant resistance is near the $29,750 level and the 100 hourly Simple Moving Average, posing additional challenges for Bitcoin’s price recovery. This level corresponds to a 61.8% Fibonacci retracement level of the recent decline, making it a crucial hurdle.
Moreover, the next major resistance level lies at $30,000, which holds the potential to initiate a fresh upward movement if successfully surpassed. A close above $30,000 could pave the way for further gains, with the $30,400 resistance as the next target. Breaking through this resistance zone may also lead to a bullish run toward the $30,850 mark.
However, if Bitcoin fails to clear the $29,250 resistance, the bearish momentum might persist, pushing the price downwards. Immediate support on the downside lies near the $28,880 level, with the $28,500 level serving as the next critical support.
A further drop could bring Bitcoin’s price closer to the $28,200 level, and any losses beyond this point could potentially drive the price toward the $27,500 level in the short term.
Technical indicators also signal a bearish zone for Bitcoin. The hourly Moving Average Convergence Divergence (MACD) has gained momentum in the bearish zone, underscoring the downward pressure on the cryptocurrency’s price. Additionally, the Relative Strength Index (RSI) for BTC/USD is below 50, further affirming the bearish sentiment.
Bitcoin faces a challenging time as it struggles below key resistance levels, indicating a bearish trend. Traders and investors need to closely monitor the support levels at $28,880 and $28,200, while resistance at $29,250, $29,750, and $30,000 present significant hurdles for a potential bullish reversal. Technical indicators emphasize the current bearish sentiment, making it crucial for market participants to exercise caution in their trading strategies.
