Bitcoin's Price Plummets, Is the Bullish Trend Coming to an End?
Bitcoin (BTC) has recently encountered significant hurdles in its journey. Despite attempting to surpass the resistance level of US$46,000, BTC faces strong selling pressure.
The situation worsened with the emergence of rumors about the rejection of its spot ETF, triggering bearish sentiment that led to a decline in BTC's price.
BTC Price Movements
The hourly chart of the BTC/USD pair reveals a compelling narrative. Initially, the cryptocurrency experienced a breakthrough below a crucial bullish trendline, marked by support around US$43,200.
According to NewsBTC reports, this breach led to a sharp drop of more than 10 percent, eventually pushing the price below the US$40,000 support. The lowest point reached was around US$39,500.
However, a glimmer of hope emerged as the market initiated a recovery wave. BTC managed to climb back above the US$41,500 and US$42,000 levels, demonstrating resilience amid bearish attacks.
Notably, there was a positive movement above the 50 percent Fibonacci retracement level from the previous downturn, ranging from the US$45,913 swing high to the US$39,501 low.
As of the latest update, Bitcoin is trading below US$43,500 and the 100-hour SMA indicator. Immediate resistance is anticipated around the US$43,200 level, with the first significant hurdle at US$43,500 or the 61.8 percent Fibonacci retracement level from the last swing high to low.
A decisive close above US$43,500 could pave the way for further upside movement, with the next significant barrier at US$44,400. Surpassing this level may open opportunities for potential gains towards US$45,000.
However, if BTC fails to overcome the resistance zone around US$43,500, there is a threat of a new downturn. The nearest support is around the US$42,000 level, but a breach could signal an increasing bearish momentum.
The next critical support is at US$41,300. Movement below this threshold could trigger further downward momentum, potentially pushing the price towards the short-term support of US$40,500.
Bitcoin is at a crucial juncture, facing resistance levels and the impact of ETF rejection rumors. Traders and investors carefully monitor the mentioned key levels, with decisive movements likely to determine the short-term trend for BTC's price.
As the crypto market continues to navigate uncertainty, the resilience shown amid challenges emphasizes the enduring nature of this digital asset.
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