Bitcoin, the world's leading cryptocurrency, is under pressure as key support levels break. This raises concerns about a potential shift in its recent upward trend.
Key Support Levels at Risk
On the daily chart, Bitcoin has dropped below a critical Fibonacci support level around $83,000, which had previously acted as a strong foundation. Analyst Josh from Crypto World suggests that this move indicates a reversal in the short-term trend. If Bitcoin can't reclaim this level, the next major support is around the high $70,000 range.
Bullish Momentum Fading
The bullish momentum that fueled optimism in recent weeks is now losing strength. The Relative Strength Index (RSI) is approaching a critical threshold on the daily chart, where a drop below confirms the end of the bullish trend. This marks a shift in sentiment, suggesting that Bitcoin’s recent recovery may have peaked.
What's Next for Bitcoin?
In the short term, traders are focusing on the $81,600 level. A drop below this level could trigger a move toward $80,000 and possibly down to $78,500. Resistance levels to watch include $83,500, $85,000, and $88,000. Despite the current downward pressure, the long-term outlook for Bitcoin remains uncertain, influenced by macroeconomic factors and overall market sentiment.
Bitcoin is facing challenges as key support levels are breached, which may signal upcoming changes in market dynamics. However, its long-term outlook remains uncertain and will depend on broader market and economic conditions.
