Bitcoin has fallen below a key short-term support level, increasing concerns that the world’s largest cryptocurrency could face further losses if selling pressure persists.
Bitcoin was trading at around $83,119 on the five-hour chart, down from a recent peak of $87,363. The decline has pushed the cryptocurrency below its 20- and 50-period simple moving averages (SMAs), indicating weakening short-term momentum, News.Az reports.
Technical indicators also point to growing selling pressure. The Moving Average Convergence Divergence (MACD) has moved into bearish territory, while the Relative Strength Index (RSI) stood at 42.74, below the neutral 50 level.
The latest five-hour candlestick also formed a bearish Marubozu pattern, suggesting strong selling pressure through the session and limited buying activity toward the close.
Market participants are now closely watching the $81,194-$81,689 area. The zone combines several technical support indicators, including the lower boundary of the Ichimoku cloud and a key Fibonacci retracement level.
A sustained break below $81,689 could increase downside pressure and put the 200-period SMA near $78,590 into focus.
On the upside, $84,109 represents an important resistance level. Bitcoin would need to regain and hold above this area to weaken the current bearish technical setup. Further resistance could then emerge around $86,500 and the recent $87,363 high.
Technical analysis also indicates a developing double-top formation, traditionally regarded as a bearish chart pattern if its support level is decisively broken. However, the formation has yet to be confirmed.
The $82,650-$84,109 range could meanwhile remain volatile, with neither buyers nor sellers establishing clear control.
Bitcoin’s next moves around the $81,000 support area and $84,109 resistance are therefore expected to provide traders with a clearer indication of whether the current decline is a temporary correction or the beginning of a deeper pullback.
Cryptocurrency prices remain highly volatile, and technical indicators or chart patterns do not guarantee future price movements.