Bitcoin Technical Analysis: Bearish Reversal Signals Emerging
Bitcoin (BTC/USD) is showing signs of a potential bearish reversal after repeated failures to break through a key resistance zone, according to recent technical analysis on the daily chart. The market’s inability to push higher has sparked strong selling pressure, creating a cautious outlook for traders.
🚩 Resistance Rejections Signal Weakness
BTC has faced multiple rejections at a critical resistance level, each marked by sharp pullbacks. These repeated failures have added weight to the bearish narrative, with selling pressure becoming more pronounced each time.
The decisive shift occurred when Bitcoin broke below its ascending trendline, effectively confirming a loss of bullish momentum. This structural break indicates the possible start of a bearish phase.
📉 Momentum Indicators Support Bearish View
The Relative Strength Index (RSI) currently stands at 42.74, trending lower but still above the oversold zone. This suggests that while downward momentum is building, there remains room for further declines before a relief bounce can occur.
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Key Support Levels to Watch
The next critical area lies at the 200-day Exponential Moving Average (EMA), which is positioned around 103,179 USD. Historically, this EMA has served as a strong dynamic support zone. A breakdown below this level could expose Bitcoin to deeper losses.
The immediate downside target range is 100,720 – 100,419 USD, where stronger support is anticipated. However, if bears maintain control, even these levels may be challenged, potentially extending the bearish slide.
⚠️ Trading Outlook
Traders and investors should closely monitor Bitcoin’s reaction around the 200 EMA. A strong defense by the bulls could provide a short-term bounce, but failure to hold this zone would confirm further weakness.
This analysis highlights a pivotal moment for Bitcoin as it transitions from bullish momentum into a potentially more extended correction phase. As the market evolves, caution is warranted for bullish holders until clearer reversal signals emerge.
