Bitcoin Faces Challenges as Prices Break Key Support Levels
Technical patterns hint at a possible downturn for Bitcoin after a significant price drop.
What to know:
- Bitcoin has declined by over 7% after peaking above $124,000.
- Bearish indicators suggest a corrective phase may be imminent.
Recent Analysis
Bitcoin remains at risk of further losses, having dipped below critical support levels after previously reaching highs over $124,000. The latest charts reveal that the cryptocurrency could be entering a more bearish phase, with various indicators suggesting a potential price correction.
Market Indicators
The weekly charts illustrate that Bitcoin’s inability to maintain gains above the Fibonacci golden ratio at $122,056 has led to a downturn. This resistance corresponds with major bull runs from 2017 to 2021.
BTC’s Weekly Chart
BTC’s weekly chart. (TradingView/CoinDesk)
Additionally, the weekly stochastic oscillator has shifted away from overbought conditions, suggesting a correction could be on the horizon.
Daily Trends
On daily grids, Bitcoin’s latest movements indicate a breach of the bullish trendline from April’s lows. This shift is corroborated by Friday’s bearish candlestick pattern, indicating potential seller dominance.
BTC’s Daily Chart
BTC’s daily chart. (TradingView)
This performance indicates rising risks for Bitcoin in the short term, with a possible retest of $111,982 to analyze market strength. A failure to hold this support could lead to a drop toward the 200-day simple moving average, around $100,000. Conversely, a rebound past the recent peak of $118,600 could weaken bearish trends.
