Bitcoin Faces Downward Pressure Amid Inflation Concerns

By: Isha Das

The cryptocurrency market, especially Bitcoin, is experiencing a sharp decline as inflation concerns and mixed economic data continue to rattle investors. Bitcoin, the world’s largest cryptocurrency, has dropped below the pivotal $113,000 mark and is struggling to stabilize. This downturn is attributed to a combination of heightened inflation fears, global trade tensions, and rising yields, which are affecting market sentiment and prompting investors to book profits.

Bitcoin has extended its slide as the bears maintain their grip, threatening further declines. After an attempted recovery failed to sustain above the $116,500 zone, the digital asset saw renewed selling pressure. Currently trading below key resistance levels, including the $115,500 point and the 100 hourly simple moving average, Bitcoin is facing significant bearish sentiment.

Technical analysis suggests a bearish trend continuing with resistance clearly forming at the $115,400 mark. According to various chart patterns analyzed on the BTC/USD pair, a decisive move above $115,500 is necessary to potentially reverse the current bearish momentum and possibly regain levels around $118,500. However, without a clear breakout above this resistance, the risk of further losses looms with targets set below $112,000 in sight.

Market analysts anticipate that if Bitcoin fails to reclaim and hold above the $115,000 resistance zone, it could endure further declines. Immediate support is identified at $112,500, with more significant support seen at $110,500. Should these levels fail, Bitcoin might retrace down to $108,000, marking a substantial hit to its support structure. As macroeconomic factors continue to weigh heavily, market participants are keeping a close watch on potential changes in Bitcoin's trajectory.