TLDR
Bitcoin has experienced a decline from $97,500, failing to maintain support above $96,200
A key bearish trend line has formed with resistance at $96,000 on the hourly chart
Current trading shows BTC below both $96,200 and the 100-hour Simple Moving Average
Support levels are established at $95,000 and $94,200, with major resistance at $96,000 and $98,000
Despite the dip to $93,388, bulls defended this level, suggesting potential for recovery
Bitcoin’s price has entered a period of consolidation as traders closely monitor the $95,000 support level following a notable decline from recent highs. The leading cryptocurrency has pulled back from the $97,500 zone, encountering selling pressure that pushed the price below several key technical levels.
The latest market data shows Bitcoin trading below the important $96,200 threshold and the 100-hour Simple Moving Average, suggesting short-term bearish momentum. This technical formation has been accompanied by the development of a bearish trend line, which currently presents resistance at the $96,000 mark.
During the recent downward movement, Bitcoin found a temporary bottom at $93,388, where buyers stepped in to prevent further decline. This price action demonstrated that despite the bearish pressure, there remains substantial buying interest at lower levels.
The recovery attempt from the local bottom has seen Bitcoin reclaim the $95,000 level, successfully clearing the 23.6% Fibonacci retracement level of the downward move from the $98,825 swing high to the $93,288 low. However, the recovery faces immediate hurdles ahead.
Markey Analysis
Technical analysis reveals multiple resistance levels that Bitcoin must overcome to resume its upward trajectory. The first major resistance appears at $96,000, coinciding with the aforementioned bearish trend line. This level represents a crucial point for potential trend reversal.
Beyond the immediate resistance, the $96,200 level presents another challenge, corresponding to the 50% Fibonacci retracement level of the recent downward movement. Should Bitcoin successfully breach this zone, the next target for bulls would be the $96,750 mark.
The market structure suggests that a decisive close above $96,750 could trigger a stronger recovery phase. In such a scenario, Bitcoin might target the $97,500 resistance level, with potential extension toward $98,200 or even $98,500.
However, the downside risks remain present. If Bitcoin fails to overcome the $96,000 resistance zone, sellers might regain control. The immediate support level at $95,000 serves as the first line of defense for bulls.
Below the current price, the market has established several support levels. The $94,200 mark represents the first major support, followed by the recently tested $93,400 zone. A breach below these levels could expose the $92,200 support area.
The technical indicators present a mixed picture. The hourly MACD shows decreasing bearish momentum, while the Relative Strength Index (RSI) remains below the 50 level, indicating ongoing selling pressure in the short term.
Volume analysis suggests that trading activity has increased during the recent price decline, though not at levels typically associated with strong trend reversals. This moderate volume profile suggests a period of price discovery rather than a definitive trend change.
The hourly chart formation reveals a series of lower highs and lower lows, a pattern typically associated with bearish market structure. However, the presence of buying pressure at lower levels indicates that sellers have not gained complete control of the market.
Price action in the derivatives market shows a slight increase in selling pressure, with the funding rate adjusting to reflect the recent downward movement. This suggests that short-term traders are positioning for potential further downside.
The latest market data indicates that Bitcoin is trading at $95,200, maintaining position above the crucial support level but still facing resistance from the bearish trend line at $96,000.
