Bitcoin’s Downtrend: Will the Support Trendline Save the Day?

Intricate crypto scene in a dark, moody setting, cascading coins entwined with a declining chart line, symbolic downtrend bear wrapping the coins, triumphant bull in the distance leaning on support trendline, soft candlelit glow highlighting Fibonacci retracement level, hints of artistic optimism contrasting bleak surroundings.

The crypto market has recently experienced increased selling pressure, which in turn caused Bitcoin to lose more ground. The leading cryptocurrency has been falling for seven consecutive days, suffering an 11.3% weekly loss. Amidst this downfall, Bitcoin prices breached the significant support of $27,000, signaling that coin holders might bear witness to a more extended downward period. The bearish breakdown from $27,000 has further intensified the selling momentum in the market.

Despite the recent decline, the Bitcoin price may maintain a bullish rally as long as the rising support trendline remains intact. The intraday trading volume in Bitcoin currently stands at $19.4 billion, indicating an 8% loss. The market has witnessed a decisive break below the monthly support of $27,000, which in turn provides sellers an additional barrier to exert pressure on market buyers and prolong the correction fall.

If the daily candle closes below $27,000 with significant volume, interested traders may consider short-selling opportunities. However, it’s possible that prices may display a slight pullback to retest the breached support and validate its impact on this breakdown. In the event that the Bitcoin price remains below $27,000, the next critical support level directly falls 6% to $25,200-$25,000.

While the short-term view for Bitcoin appears bearish, it is essential to recognize that the overall trend remains bullish. The coin’s price is still above the 50% Fibonacci retracement level. The daily chart also shows an ascending trendline, which could offer buyers a great pullback opportunity to ride the next recovery cycle.

Investors should keep an eye on specific technical indicators, which currently provide some optimism amidst the bearish landscape. The 200-day exponential moving average (EMA) approaches $25,000, potentially strengthening the support power of this level. Additionally, the relative strength index (RSI) slope dives deeper into bearish territory, reflecting the aggressive selling momentum dominating the market.

The current Bitcoin price intraday levels to watch are:

Spot rate: $28,178
Trend: Bullish
Volatility: Medium
Resistance levels: $27,000 and $28,800
Support levels: $25,000 and $24,000

In conclusion, while the immediate situation for Bitcoin’s price may appear bearish, the overall market conditions remain supportive of a potential bullish rally. As traders navigate the market, keeping an eye on the technical indicators and upcoming support and resistance levels will be critical for making informed decisions.

Source: Coingape

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