Bitcoin price has started to show signs of weakness as it slips below the crucial $98,000 support level. The leading cryptocurrency had been consolidating above the $95,000 zone, but the bulls are now struggling to maintain their grip on the market.
The recent decline saw Bitcoin break below the $98,000 level and the 100-hour Simple Moving Average (SMA). This bearish momentum has pushed the price down to test the 61.8% Fibonacci retracement level of the upward move from the $91,000 swing low to the $102,500 high.
Technical analysis reveals a connecting bearish trend line forming with resistance at $98,200 on the hourly chart of the BTC/USD pair. If the bulls fail to push the price back above this trend line and the $98,000 resistance zone, further losses could be on the horizon.
On the downside, immediate support lies at the $96,000 level, followed by a major support zone around $95,500. If these levels are breached, Bitcoin could be looking at a deeper correction, with the next support levels located at $93,700 and $92,000.
However, if the bulls can muster enough strength to push the price back above the $98,000 resistance and close above the $100,000 psychological level, it could open the doors for a retest of the $101,200 resistance and potentially even the recent high at $102,500.
The current market sentiment appears to be leaning towards the bearish side, with the MACD gaining pace in the bearish zone and the RSI dipping below the 50 level. Traders should keep a close eye on these key technical indicators and the aforementioned support and resistance levels to gauge the short-term direction of Bitcoin’s price.
A decisive break below the $95,500 support could signal a shift in the market sentiment and potentially lead to a more significant correction. On the other hand, a strong bounce from this level and a close above $100,000 would indicate that the bulls are still in control and that further upside could be in store for Bitcoin.
As always, it is crucial for traders and investors to exercise caution and employ proper risk management strategies when navigating the volatile cryptocurrency markets. Keeping an eye on the broader market sentiment, as well as any fundamental developments in the space, can help inform trading decisions and mitigate potential losses.
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Tags: Bitcoin price, technical analysis, market sentiment, support levels, resistance levels
Source: https://www.newsbtc.com/analysis/btc/bitcoin-price-slips-96500/