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Bitcoin’s recent price action unveils a critical shift in market sentiment. A key resistance level has emerged after a powerful rally that pushed prices beyond $70,090.40 and reached an impressive high of $108,460.50. This marks the apex of the bullish trend, setting the stage for a potential reversal.
The subsequent bearish reaction from the $108,460.50 resistance highlights a change in momentum. Prices fell below the $99,960.30 supply zone, initially suggesting a retracement might occur before resuming the uptrend. However, this expectation was negated as the formation of a lower high confirmed weakening bullish strength. Adding to this, a head-and-shoulders pattern—a hallmark of bearish reversals—has materialized, signalling the increasing dominance of sellers.
BTC Key Levels
Demand Levels: $81,620.50, $70,090.40, $59,500.70
Supply Levels: $89,750.60, $99,960.30, $108,460.50
What Are the Indicators Saying?
The Relative Strength Index (RSI) underscores declining momentum, reflecting reduced bullish strength as the price fails to sustain upward movement. This aligns with the bearish narrative, hinting at growing selling pressure.
Moreover, Bitcoin has dropped below the moving average, a clear bearish signal. This confirms a shift in sentiment, with sellers increasingly controlling the market direction. These technical insights suggest that Bitcoin could be entering a sustained bearish phase, with key levels playing a crucial role in determining the next move.
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