After briefly breaking above $66,000, the price of Bitcoin retreated, breaking through several key levels, allowing the bears to regain control of the market. Even though the current Bitcoin price shows signs of recovery, the bear camp is still strengthening, and the recent failure to break through the MA-200 moving average indicates that the upward trend may be short-lived and may face a larger decline in the future.

Negative impact of Bitcoin breaking below MA-200

According to the analysis of cryptocurrency analyst RLinda, Bitcoin tried to break through the MA-200 level, aiming at the resistance level of $64,000 to $65,000. However, this level was too strong, causing the price to be suppressed again.

The failure of MA-200 has caused Bitcoin to form a descending channel, which is often a precursor to a crash. At the same time, the price broke through the range boundary, forming a strong liquidity area, and analysts believe that the market may have further downward movement.

With bears dominating the market, it seems only a matter of time before the Bitcoin price pulls back again, with analysts predicting a drop of at least 10%, potentially taking it below $60,000 again.

Key resistance and support levels

Analysts point out that $62,745 and $64,955 are the main resistance levels, and only by successfully breaking through these two levels can the upward trend be confirmed. Relatively speaking, support levels are set at $60,000, $59,250, and $57,700. If Bitcoin fails to maintain these levels, the decline may be deeper, even down to $52,000.

Potential factors mitigating bearish pressure

Another analyst, Alan Santana, also highlighted the bearish pressure brought by Bitcoin’s failure to break through MA-200. He pointed out that the current price is below MA-200, which strengthens the bearish bias of the market and indicates that there may be a subsequent decline.

However, there are several factors that could ease the bearish pressure. First, if Bitcoin can close above $66,500 on the weekly chart; second, if it closes above $71,000 on the monthly chart, both of which would help to eliminate the current bearish pressure. As long as the Bitcoin price is below $66,500 (short-term) or $71,000 (long-term), the bearish trend will persist.