It's ⛈️ a tumultuous time in the crypto market as Bitcoin faces significant bearish pressure, with key technical indicators pointing towards further downside potential. Let's break down these indicators:
1. BTC Price Breaks Key Support:
Bitcoin's price action has been forming lower lows since April, signaling a 🐻 trend in the short to medium term. The recent drop below $57K and the breach of the $58K support level confirm this bearish sentiment. The next key support levels to watch are $52K and $48.5K.
2. Momentum Remains Bearish:
Bears continue to dominate the market, with Bitcoin's price appearing to be in free fall. If this downward correction persists, there's a possibility of revisiting the $52K or $48K support levels. These are crucial levels that could determine the next phase of Bitcoin's price action.
3. Weekly MACD Bearish Cross:
The weekly Moving Average Convergence Divergence (MACD) indicator recently made a bearish cross, signaling further downside potential. This bearish crossover often precedes significant price declines, and Bitcoin's recent drop from $64K to $57K within 48 hours underscores this warning signal.
Looking ahead, Bitcoin's macro trend remains bullish as long as it stays above $50K. However, a breach of this level could lead to increased anxiety among even the most optimistic bulls. In such a scenario, many altcoins may experience significant retracements, potentially erasing gains made since the start of the bull run in early 2023.
In summary, while the current market conditions are challenging, keeping a close eye on these key support and resistance levels, along with monitoring momentum indicators like the MACD, can provide valuable insights into Bitcoin's future price movements.