Bitcoin is facing a bearish turn as it confirms a breakdown from a rising wedge pattern, putting its recent gains at risk. The cryptocurrency has struggled to maintain key support levels and has now breached critical trendlines, paving the way for a potential deeper correction towards $73,919. This level is seen as a crucial point that could determine whether the current pullback is a healthy consolidation or the beginning of a more significant decline.
The market sentiment has turned cautious as selling pressure intensifies, with traders closely monitoring Bitcoin’s price action to see if it can find stability. If the bears continue to dominate, BTC could face further steep declines in the near term.
The bearish momentum has strengthened following the breakout from the rising wedge pattern, signaling a shift in control from bulls to bears. The downward pressure has been evident in the formation of multiple red candles on the price chart, indicating sustained selling activity. Bitcoin’s inability to reclaim lost ground and the resistance faced during recovery attempts further confirm the bearish outlook.
Technical indicators are also painting a grim picture for Bitcoin, with the Moving Average Convergence Divergence (MACD) flashing a strong sell signal. The MACD line has crossed below the signal line and is moving further below the zero line, indicating a shift in momentum towards the downside. Additionally, Bitcoin has dropped below the critical 100-day Simple Moving Average (SMA), a level that typically acts as dynamic support or resistance. This failure to hold above the SMA suggests that selling pressure is increasing, making it challenging for the bulls to regain control.
Bitcoin is now approaching a key support level at $73,919, which could determine its next major move. If buyers step in with strong demand at this level, Bitcoin could bounce back and challenge resistance levels above. However, if selling pressure persists and BTC fails to hold $73,919, the risk of a prolonged downtrend increases, with potential support levels at $65,082 and $60,152 coming into play.
Overall, Bitcoin’s bearish turn and the breakdown from the rising wedge pattern have raised concerns among traders and investors. The next few days will be crucial in determining whether Bitcoin can find support and reverse its current downtrend or if further declines are on the horizon.