What happened?
Bitcoin’s price is currently at $108,532 with a decrease of 1.20% in the past day. It seems to be stuck in a descending trading channel displaying a clear bearish trend. The currency is testing the lower boundary of the channel at $108,594, while its 50-period simple moving average (SMA) at $110,787 serves as the ceiling.
Who does this affect?
This affects Bitcoin traders who are looking at these movements to make their decisions. Immediate support and resistance zones are crucial for their next moves. A short-term bounce toward $110,000 is possible, but there’s a risk of renewed pressure if the currency fails to clear the barrier of the 50-SMA. Critical levels include immediate resistance at $110,787 and $111,350, with support levels at $107,335, $105,150, and $103,350.
Why does this matter?
This matters because the market impact of Bitcoin’s current behavior could be significant. Despite the short term weakness, Bitcoin maintains a position above key psychological levels such as $100,000, meaning the broader trend is still intact. With current market conditions leaning towards sellers, strategic accumulation opportunities may arise for those betting on Bitcoin’s next bullish cycle.