Bitcoin’s price action has entered a critical phase as it consolidates below the psychological $100,000 mark. The leading cryptocurrency is showing signs of weakness after failing to maintain momentum above $98,500, triggering concerns among traders about potential further downside.
Current Market Situation
BTC is currently trading below $96,500, with bears gaining control of the short-term trend. The price has broken below several technical indicators, including the 100-hour Simple Moving Average. This breakdown suggests increasing selling pressure in the market.
Technical Analysis
The hourly chart reveals a concerning pattern. BTC broke below a key bullish trend line at $96,670. The price found temporary support at $95,000 and managed a slight recovery above $95,750. However, the technical structure remains bearish below $97,000.
Key resistance levels to watch:
- Immediate resistance: $96,650
- Critical resistance: $97,000
- Major barrier: $97,600
- Psychological level: $100,000
Support zones to monitor:
- Initial support: $95,500
- Major support: $95,000
- Secondary support: $93,500
- Critical support: $91,000
Market Implications
The current price action suggests a potential shift in market sentiment. Traders should watch the $97,000 resistance zone carefully. A break above this level could trigger a rally toward $98,500. However, failure to breach this resistance might lead to a deeper correction.
Technical indicators paint a cautious picture. The MACD shows declining momentum in the bullish zone, while the RSI has dropped below 50. These signals suggest bears might have the upper hand in the short term.
Advertisement
Trade Bitcoin with up to 100x leverage on DeFX! Experience professional-grade trading with instant execution and tight spreads.
Looking Ahead
Bitcoin’s inability to break above $100,000 might lead to increased volatility. Traders should maintain strict risk management practices. The next 24-48 hours could determine the short-term trend direction.
Tags: Bitcoin Price Analysis, BTC Technical Analysis, Cryptocurrency Markets, Bitcoin Trading, Market Analysis
Source: NewsBTC