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12/08/24
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Bitcoin Faces Bearish Outlook as Key Support Levels Erode
Bitcoin has experienced a notable downward shift after reaching resistance near $62,700. The cryptocurrency is currently stabilizing around the $58,500 mark but faces challenges in making a recovery. As it drops below key thresholds, including $61,500 and $60,000, Bitcoin’s short-term outlook appears increasingly bearish.
The recent decline has pushed Bitcoin below the $60,000 milestone and the 100-hourly Simple Moving Average. A significant bearish trend emerged with the price breaking under a critical support line at $61,000. This downturn also marked a drop below the 50% Fibonacci retracement level from a previous upward move that started at $54,556 and peaked at $62,700.
At present, Bitcoin is positioned under $60,000, yet it is managing to hold above the $58,500 support zone, which previously served as a foothold for bullish activity. The price remains stable above the 61.8% Fibonacci level of the same upward movement. Should Bitcoin make a comeback, it is expected to face resistance around $59,500, with the immediate resistance level at $60,000. A decisive break above this threshold could lead the price to test the next resistance at $61,200.
Conversely, if Bitcoin is unable to surpass the $60,000 resistance, it is likely to continue its downward trajectory. Immediate support lies at $58,500, followed by more significant support levels at $57,650 and $57,250. Further weakness could result in price declines towards $55,500 or even $55,000 in the near future.
Technical indicators are suggesting this bearish sentiment, with the MACD indicating a strengthening downward momentum and the RSI for BTC/USD falling below the neutral 50 level. The current landscape presents traders with a mix of critical support and resistance levels that may dictate Bitcoin’s upcoming price actions.
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