Bitcoin faces growing downside risk after slipping below a key long-term support level. By Market Capitalization, Bitcoin (BTC) is the largest cryptocurrency and the first to implement blockchain technology.
Bitcoin’s behavior determines risk appetite for the entire crypto market by sending directional signals to all other digital assets. At press time, the coin is trading at $69,894.37 with a decline of 6.43% over the past 24 hours.
BTC Weakens Below Former Support
Currently, Bitcoin is trading in the area of $69,000 on the daily timeframe on TradingView, after decisively breaking through a significant horizontal level of support. Following the breakdown of this key support level, the area now functions as resistance, limiting potential upside movement.
Overall price action, continuing to create lower highs, is showing increasingly bearish characteristics in the short term and confirming a bearish trend.
Further supporting a bearish short-term outlook, On-Balance Volume (OBV) continues to trend lower, indicating that there is still an active distribution of BTC and no interest in buying the dips any time soon.
Additionally, MACD continues to display significant negative momentum with expanding histogram bars indicating the potential for further bearish momentum for the near future.
Unless price can hold the support area of $68,000 to $66,500, BTC may face increased selling pressure moving forward.
Also Read: Bitcoin Faces Heavy Selling Stress as Realized Losses Hit $1.26 Billion Daily
Social Media Reactions Show Caution From Traders
According to Ali Charts recent post on X, BTC has shown the ability to trade towards its 200-week SMA after losing its 100-week SMA without quickly recovering to the 100-week SMA since 2015.
This data provides a historical basis for cautiousness among traders who are currently watching to see which key level, if any, BTC can recover before continuing through its current corrective phase.
In conclusion, the technical outlook favors caution unless BTC can recover lost support levels and remain above important moving averages.
Currently, momentum indicators suggest downside risk remains a high probability, putting upcoming support levels at risk for immediate price direction.
Also Read: MicroStrategy (MSTR) Slides $129.09 as Bitcoin Drop Sparks Leverage Concerns
