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Bitcoin’s value is under pressure as it trades beneath essential resistance levels, reflecting a bearish trend in the cryptocurrency sector. The BTC/USD pair is positioned below $29,500 and the 100 hourly Simple Moving Average, leading to a new decline in price.
The latest downward shift resulted in a notable breach below a significant bullish trend line with support around $29,700 on the hourly chart of the BTC/USD pair, raising concerns among traders and investors. The pair’s drop could extend towards the vital $28,200 support area.
In a noteworthy development, Bitcoin’s price has settled below the $30,000 support area, indicating the onset of a bearish trend. The critical $29,650 support area was also surpassed, resulting in additional losses for the cryptocurrency.
The present situation necessitates caution and attentiveness among market participants. Furthermore, with the violation of a key support level, the BTC/USD pair faces a challenging task to regain upward momentum. The immediate resistance is situated near the $29,250 level, which corresponds to a 23.6% Fibonacci retracement level of the recent decline from the $30,333 swing high to the $28,880 low.
Additionally, the first notable resistance is around the $29,750 level and the 100 hourly Simple Moving Average, creating further obstacles for Bitcoin’s price recovery. This level aligns with a 61.8% Fibonacci retracement level of the recent decline, making it a significant barrier.
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Moreover, the next major resistance level is at $30,000, which has the potential to trigger a new upward movement if successfully surpassed. A close above $30,000 could open the door for further gains, with the $30,400 resistance as the subsequent target. Overcoming this resistance zone may also lead to a bullish surge towards the $30,850 mark.
However, if Bitcoin is unable to surpass the $29,250 resistance, the bearish momentum may continue, driving the price lower. Immediate support on the downside is near the $28,880 level, with the $28,500 level acting as the next crucial support.
A further decline could bring Bitcoin’s price closer to the $28,200 level, and any losses beyond this threshold could potentially push the price toward the $27,500 level in the near term.
Technical indicators also suggest a bearish environment for Bitcoin. The hourly Moving Average Convergence Divergence (MACD) has gained traction in the bearish zone, highlighting the downward pressure on the cryptocurrency’s price. Additionally, the Relative Strength Index (RSI) for BTC/USD is below 50, further reinforcing the bearish sentiment.
Bitcoin is encountering a difficult phase as it remains below significant resistance levels, indicating a bearish trend. Traders and investors should closely observe the support levels at $28,880 and $28,200, while resistance at $29,250, $29,750, and $30,000 presents considerable challenges for a potential bullish reversal. Technical indicators underscore the prevailing bearish sentiment, making it essential for market participants to proceed with caution in their trading strategies.
The post Bitcoin Price Hits Next Bearish Target, But Bears Are Not Done Yet appeared first on BitcoinWorld.
