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Bitcoin is currently facing strong downward pressure as it struggles to surpass the $99,575 level, a crucial resistance point that has proven to be a major obstacle. Despite a notable rally earlier this month, BTC’s momentum has slowed down, with sellers taking charge and keeping the cryptocurrency within a narrow range below this critical level.
The ongoing price action reflects increasing uncertainty in the market, as bulls strive to regain strength while bears seize every opportunity to push prices lower. With $99,575 identified as a key juncture, the next moves could determine Bitcoin’s short-term direction. Will the bulls succeed in breaking through, or will bearish control prevail? The upcoming days will reveal the answer.
Bitcoin Struggles Below The Crucial $99,575 Resistance Level
Bitcoin is currently encountering significant resistance at the $99,575 level as its price attempts to breach this critical barrier. Despite efforts to rally, bearish pressure has kept BTC below this important resistance point, constraining its upward movement.
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As Bitcoin lingers near this level, market sentiment remains cautious, considering the possibilities of a breakout or a deeper retracement. Additionally, the $99,575 level remains pivotal, as a successful breakthrough could signal further bullish momentum, while a failure to surpass it might lead to increased selling pressure.
BTC’s price has also slipped below the 100-day Simple Moving Average (SMA), a critical technical indicator that often serves as a significant support level. This dip below the 100-day SMA indicates weakening upside potential and suggests that bears are gaining strength.
Historically, when the price drops below the SMA, it can indicate a potential change in market sentiment, with further downside risk if the price fails to reclaim this important indicator. If BTC fails to regain momentum and rise above the 100-day SMA, it might face increased selling pressure, resulting in more losses as bearish sentiment persists.
Key Technical Indicators Point Towards Challenges For BTC’s Recovery
An in-depth analysis of the Composite Trend Oscillator indicator suggests that Bitcoin could be heading for further declines. The indicator’s trend line and the SMA’s line have fallen below the zero line, indicating bearish momentum.
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When both these elements dip below this threshold, it typically signifies that the downtrend is strengthening, suggesting increased selling pressure. This bearish signal, coupled with the price action below the 100-day SMA, indicates that Bitcoin may struggle to regain upward momentum in the near future.
In conclusion, if bearish pressure on BTC persists, several key support levels will be crucial to monitor. The initial significant level is $93,257, where the price could discover initial support. If BTC fails to hold above this level, the next support area will be around $85,211, which has previously acted as a strong demand zone. A sustained drop below these levels may indicate an extended price decline to other support ranges.
Featured image from Unsplash, chart from Tradingview.com