Bitcoin's Fragile Recovery: Downtrend Looms as Key Resistances Hold
Bitcoin's recent attempt at a price bounce appears increasingly tenuous, with the cryptocurrency extending its decline below the $75,000 mark. Despite a nascent recovery from a low of $72,850, BTC faces significant upward hurdles, suggesting a potential resumption of its prevailing downtrend.
Navigating Critical Price Barriers
Following a failure to maintain stability above the $76,000 zone, Bitcoin's price plunged further, breaking below the $75,000 and $74,000 levels, and was pushed beneath $73,500 by persistent selling pressure. While a recent low was established around $72,865, triggering a minor rebound above $75,000 and surpassing the 50% Fibonacci retracement level of its recent downward swing, bears remain active. Crucial resistance points are clustered near $77,000, particularly around the $76,750 level and a bearish trend line at $77,200 on the hourly chart. The 100-hourly simple moving average also acts as a significant barrier below $79,000. Should Bitcoin manage to stabilize above $75,000 and decisively break past the $77,200 resistance, it could ignite a fresh upward movement, potentially targeting $78,500 and even reclaiming the $79,000 level, with further gains eyeing $80,000 and $80,500. However, a failure to breach the $77,200 resistance zone would likely trigger another wave of declines. Immediate support lies near $75,000, followed by a major support at $74,000. Subsequent losses could push the price towards $72,850, and in a more bearish scenario, down to $71,500, with the main support anchored at $70,000.
Technical Indicators Signal Caution
Analysis of key technical indicators reinforces a cautious outlook. The Hourly Moving Average Convergence Divergence (MACD) is currently gaining momentum within the bearish zone, indicating strengthening downward pressure. Similarly, the Hourly Relative Strength Index (RSI) for BTC/USD is trading below the 50 level, further underscoring the prevailing bearish sentiment in the market. Traders are advised to monitor these levels closely as Bitcoin navigates this critical juncture.
