The recent movement of Bitcoin has seen the cryptocurrency drop below the crucial $98,000 support level, signaling a continuation of its decline. Following this downturn, Bitcoin traded as low as $94,140 but has since initiated a recovery phase, climbing back above $96,500. However, it remains below the $100,000 level and the 100-hour simple moving average, indicating a prevailing bearish sentiment in the market.
A bearish trend line has formed with a key resistance point at $98,800, which Bitcoin must overcome to regain upward momentum. Currently, the price is facing significant resistance around the $98,000 level, coinciding with the 61.8% Fibonacci retracement level of the recent downward trend. A successful breakout above the $98,800 resistance could pave the way for Bitcoin to retest the $100,000 level. If momentum continues to build, there is potential for further movement towards the $104,200 and possibly the $108,000 resistance levels.
On the flip side, should Bitcoin fail to breach the $98,800 barrier, it may enter another phase of decline. Immediate support stands near $96,500, while further down, critical support levels are located at $95,500 and $94,200. A continued drop could see Bitcoin targeting the $92,000 level in the near future, reflecting a bearish sentiment if there are no positive catalysts to shift momentum.
Current technical analysis underscores a weakening position for Bitcoin , with the hourly MACD losing traction in the bearish zone and the relative strength index (RSI) remaining below the neutral level of 50. Traders and investors will be closely monitoring these levels for signs of a shift in market direction.
