Bitcoin continued its downward trend, dipping below the $95,000 level as it experiences a correction in its recent gains. The cryptocurrency struggled to regain its footing, facing significant resistance around the $96,500 level.
Following a fresh downturn from the $97,500 resistance level, Bitcoin ’s performance has been characterized by a bearish sentiment. The price is now trading beneath $97,000 and the 100-hour Simple Moving Average, indicating a prevailing downtrend. A bearish trend line has formed, where resistance is noted at $94,900 on the hourly charts for the BTC/USD pair. However, if Bitcoin can maintain its position above the support zone at $92,500, there is potential for a rebound.
The recent price action reveals that Bitcoin was unable to initiate a recovery above the $98,000 level, remaining in a short-term bearish phase and dropping past the crucial $96,500 level. It fell through the $95,000 support zone, with the lowest point recorded at $92,501. Currently, the price is consolidating below the 23.6% Fibonacci retracement level, which reflects a significant decline from the swing high of $102,760 to the recent low.
For Bitcoin to reverse its current trend, it must breach the immediate resistance at $95,000. A decisive move beyond the $96,500 level could propel the price upward. The subsequent resistance level to watch is at $97,500, along with the 50% Fibonacci retracement point. A successful close above this resistance could set the stage for an increase towards the $98,800 level, and potentially the $100,000 level.
Conversely, if Bitcoin fails to overcome the $95,000 resistance, it might see further declines. The immediate support zone stands at approximately $93,500, with further significant support levels at $92,500 and $92,000. Continued downward momentum could drive the price closer to the $91,500 level in the near term. The technical indicators suggest a growing bearish trend, with the MACD showing momentum in the negative zone and the RSI remaining below the neutral level of 50.
