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10/10/24
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Bitcoin Faces Key Support Test Amidst Market Downturn
Bitcoin has experienced a notable downturn, with its price dropping below the $61,850 level. Currently, it is testing the crucial support level around $60,000, but further declines could pose a risk to its stability.
The leading cryptocurrency has struggled to find upward momentum, failing to break through the resistance at $63,000. This has resulted in a decline, pushing the price under $62,500 and continuing through the $61,500 threshold. In fact, Bitcoin penetrated the $60,500 support level, hitting a low of $60,300 before attempting to stabilize. Minor recoveries have been registered above the $60,550 region, yet the price remains significantly below the 23.6% Fibonacci retracement level concerning its recent decline from the peak of $64,420 to the low of $60,300.
As Bitcoin trades below $61,500 and the 100-hour simple moving average, it faces potential resistance near the $61,200 level, compounded by a bearish trend line forming at $61,250. The immediate key resistance level sits at approximately $62,350, coinciding with the 50% Fibonacci retracement from the recent high to low. Surpassing this resistance could prompt a continuation upward, where further resistance levels are anticipated around $63,200 and, potentially, $64,000.
On the downside, without breaking past the $61,250 resistance, Bitcoin may initiate another downward trend. Immediate support is observed around the $60,300 area, with more significant support lying at the $60,000 level. Should losses persist, the price may approach $59,500, and further declines could see it heading towards the $58,400 zone. Currently, technical indicators suggest a bearish sentiment, with the MACD gaining momentum in a negative trend and the Relative Strength Index below the neutral 50 level, highlighting continued caution in the market.
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