Bitcoin Price Faces Increased Bearish Pressure

By: Eva Baxter

Bitcoin is currently experiencing significant bearish pressure, marked by a pronounced decline in its market price. Analysts have highlighted a dip in the Bitcoin (BTC) market following a year-low in the Coinbase Premium Gap (CPG), indicating that U.S.-based investors are exerting considerable selling pressure. This growing pessimism in the market has caused concerns about Bitcoin's ability to maintain its recently attained highs, with predictions suggesting a potential decrease toward $80,000 if the downtrend continues.

The cryptocurrency faced a fresh wave of selling as it fell beneath critical support levels, including $95,000, $94,000, and eventually $93,500. These downturns were facilitated by a breach in the declining channel with support noted at $93,550, originally recorded on the hourly chart of the BTC/USD pair. This sharp decline was precipitated by adverse macroeconomic indicators and weakening technical charts.

The recent breakdown hints at a bearish continuation pattern, especially if Bitcoin fails to surpass the newfound resistance zones at $93,500 and $94,000. Immediate resistance is identified near the $93,000 mark, but for any upward corrections to endure, Bitcoin needs to reclaim these critical levels, enabling it to retest the $95,000 and possibly $96,400 resistance zones.

As the situation unfolds, analysts are advising investors to brace for further downward movements. The primary support levels currently rest around $92,000, with subsequent barriers positioned at $91,800 and $90,500, with potential for a further decline if these levels are breached. The technical indicators also reflect the prevailing market sentiment, with the MACD losing pace in the bearish zone and the RSI sitting below the neutral 50 level, suggesting continued selling pressure could dominate in the coming days.