Bitcoin Price has experienced a significant drop, raising questions about the immediate future of the cryptocurrency market. In recent movements, Bitcoin failed to maintain momentum above $117,750, leading to a downward trend that could test crucial support levels.
Understanding Bitcoin’s Recent Decline
Bitcoin initiated a new descent below the $115,500 threshold. This drop positions the price under the 100 hourly Simple Moving Average, with a bearish trend line forming resistance around $115,200 on the BTC/USD pair’s hourly chart. The situation suggests Bitcoin could attempt another rise if it breaks through the $116,000 resistance.
Key Resistance Levels
Immediate resistance for Bitcoin Price is near the $115,000 mark, with subsequent barriers at $115,250 and $116,000. A close above this zone might propel the price towards $116,500. Potential gains could further test the $116,800 level, presenting a challenge for bulls at $117,250.
The Bitcoin Price drop began after reaching a high of $117,920, initiating a decline below $116,500 and $115,500. The downturn accelerated past $115,000, reaching a low at $114,237. Currently, Bitcoin consolidates these losses below the 23.6% Fibonacci retracement level, spanning from the $117,920 peak to the $114,237 trough.
Potential for More Losses
If Bitcoin fails to overcome the $116,000 resistance, a further decline is possible. Initial support lies near $114,250, with significant support at $113,500. Additional drops could see the price nearing the $112,500 support in the short term, with critical support at $110,500. A breach here might lead to a sharp decline.
Technical Analysis
Technical indicators reflect the current bearish mood. The Hourly MACD is gaining momentum in the bearish zone, while the Hourly RSI remains below the 50 mark, indicating selling pressure. Key support levels to watch are $114,250 and $113,250, with resistance levels at $115,000 and $116,000.
In summary, the Bitcoin Price drop emphasizes the importance of monitoring support and resistance zones. Understanding these levels can provide insights into potential market movements as Bitcoin navigates this volatile period.
