FameEX Hot Topics | Bitcoin Faces Deeper Decline as BTC Breaks Below Key Support Levels

Bitcoin faced a pullback on Tuesday, falling to $105,250 after it struggled to break past the $109,000 level on both Sunday and Monday. The digital currency's price action has been caught between the downtrend line and moving averages, suggesting that it may experience a range expansion in the coming days. This indecision in the market reflects the ongoing battle between bulls and bears.

The upsloping moving averages give a slight advantage to the bulls, but the relative strength index (RSI), sitting near the midpoint, indicates a lack of strong bullish momentum. This neutral signal suggests that while there is some upward pressure, the market is currently in a wait-and-see mode. If Bitcoin's price continues to slip and stays below the moving averages, the BTC/USDT pair could see further declines to $104,500. A drop below this level could bring the price closer to the psychological $100,000 support level, maintaining the bearish descending triangle pattern.

However, if the price rebounds from the moving averages and rises above the downtrend line, it could signal a reversal in momentum. A break above this key level could push Bitcoin towards the neckline of the inverse head-and-shoulders pattern, a bullish setup that would open the door for potential gains. This would shift the market sentiment, favoring a more optimistic outlook.

As of now, Bitcoin's price has broken below the moving averages, which indicates that short-term traders are taking profits. The next critical level of support is $104,500, and buyers are expected to defend this level aggressively. A failure to hold this level would likely lead to a deeper decline, possibly testing the psychological support at $100,000.

For any significant recovery, Bitcoin must break above the 20-day exponential moving average (EMA), which would clear the path for a rally towards the downtrend line. If the bulls manage to break this downtrend line, the pair could potentially challenge its all-time high of $111,980. However, until then, the market remains uncertain, with both upside and downside risks in play.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.