Bitcoin's Downward Spiral Continues: Key Levels to Watch
Bitcoin's price has corrected its recent gains, trading below the significant $124,000 mark and struggling to maintain its footing. The cryptocurrency is currently facing substantial downside pressure, with analysts suggesting a potential drop further below $120,000 if current trends persist. Traders are urged to exercise caution as volatility dictates market sentiment. Immediate Market Update:
- Bitcoin initiated a downside correction, falling below the $123,200 level.
- The price is currently trading beneath $123,000 and below the 100 hourly Simple Moving Average.
- A bearish trend line is forming, indicating resistance around $122,750 on the hourly BTC/USD chart.
- A sustained trade below the $120,000 zone could trigger further downward movement for the pair.
Bitcoin Price Dips Further
Failing to hold above the $125,000 zone, Bitcoin entered a fresh decline. It dipped below the $124,000 support, signaling a short-term bearish phase. The bears aggressively pushed the price past $121,200, reaching a low of $119,810 before a slight recovery. However, the asset struggled to overcome the 50% Fibonacci retracement level of its recent decline from $123,750 to $119,810, reinforcing the bearish sentiment.
Potential for Further Declines
The bearish pressure remains significant, particularly around the $121,750 level. Bitcoin is trading below $121,500 and its 100 hourly Simple Moving Average, while the established bearish trend line near $122,750 continues to act as strong resistance. Should Bitcoin fail to surpass this resistance, a fresh wave of declines could ensue. Immediate support is anticipated near $120,750, followed by the critical $120,000 level. Further losses might push the price towards $118,500, with major support lying at $115,500.
Technical Indicators Overview
- Hourly MACD – The MACD is gaining momentum within the bearish zone, indicating increasing downward pressure.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level, suggesting a lack of buying strength.
- Major Support Levels – Key support levels are identified at $120,750 and $120,000.
- Major Resistance Levels – Significant resistance is found at $122,750 and $123,500.
