Bitcoin (BTC) Facing Increasing Pressure as Key Support Levels Break, Raising Concerns About the End of Its Recent Upward Trend

Bitcoin (BTC) is facing increasing pressure as key support levels are breaking, raising concerns about the end of its recent upward trend. By Joshua of Crypto World.

Bitcoin (BTC) is facing increasing pressure as key support levels are breaking, raising concerns about the end of its recent upward trend. The world’s leading cryptocurrency is struggling to hold its gains, with technical indicators hinting at a shift toward bearish territory.

As reported by Benzinga previously, Bitcoin dropped below a critical Fibonacci support level on the daily chart, which had been offering support for the past three months. This move, as analyzed by Josh of Crypto World on YouTube, suggests a reversal in the short-term trend.

> "This is a big level to lose. If we close below this $83k level, then the next major support is going to be around the high $70k range."

A daily close below $83,000 would likely turn this support into resistance, applying more downward pressure on the price.

Bitcoin is also encountering resistance at the $85,000 level, which could be a key determinant of the next major trend. A break above this level would open the door for a move toward the $88,000 range, presenting a significant opportunity for bullish traders.

On the other hand, if Bitcoin fails to hold gains and drops below $80,000, it could set the stage for a decline toward the $78,500 support.

Shift in Technical Indicator

The Relative Strength Index (RSI) is approaching a critical threshold, where a drop below 40 could confirm the end of the bullish trend. This marks a shift in sentiment, showing that Bitcoin’s recent recovery may have reached its peak.

This indicator measures the magnitude of recent price changes to assess overbought or oversold conditions in the market. A reading above 70 indicates that the market is becoming overbought, while a reading below 30 indicates that the market is becoming oversold.

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.

On the upside, resistance levels to watch include $83,500, $85,000, and $88,000.

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