Bitcoin Extends Decline: Market Under Pressure

Bitcoin (BTC) is currently facing significant bearish pressure, with its price struggling to maintain crucial support levels. The cryptocurrency has extended its decline, largely influenced by a prevailing risk-off sentiment across the market, leaving investors questioning the immediate future of its valuation.

Price Action and Key Resistances

The digital asset failed to sustain its position above the critical $113,500 pivot level, triggering a sharp dip below both $112,500 and $112,000. This downward movement has pushed Bitcoin into a firmly bearish zone, evidenced by its trade below the 61.8% Fibonacci retracement level of its recent upward rally from $106,718 to $116,310. An hourly chart analysis further reveals a developing bearish trend line, with $111,500 acting as a significant resistance point. Notably, BTC continues to trade beneath the $112,000 mark and the 100 hourly Simple Moving Average, reinforcing the dominant bearish trend. Should bulls attempt a recovery, they would first encounter resistance near $111,500 and the trend line, followed by $112,000 and then $112,500.

Bearish Outlook and Critical Support Levels

The immediate forecast suggests that if Bitcoin struggles to climb above the $112,500 resistance, further losses are highly probable. Key immediate support is identified at $110,000, with a more substantial major support level situated near $108,800, which aligns closely with the 76.4% Fibonacci retracement level. Technical indicators corroborate this bearish sentiment: the Hourly MACD is accelerating its pace within the bearish zone, and the Hourly Relative Strength Index (RSI) for BTC/USD has dipped below the 50 level. A breach below the $108,000 zone could see the price drop towards $106,500 in the near term, with the ultimate major support at $103,500, below which a short-term recovery would become increasingly challenging.