Despite a brief weekend rally, Bitcoin continues to grapple with bearish pressure, encountering multiple resistance levels and heightened market risk. While recent gains coincided with a weakening dollar, cautious sentiment prevails among investors.
Bitcoin’s recent attempt to breach the 26-day Exponential Moving Average (EMA) signifies a pivotal technical challenge. However, this barrier has proven formidable, casting doubt on the cryptocurrency’s ability to overcome it. Should this resistance persist, Bitcoin could revisit the $58,000 support level, which has demonstrated resilience in recent months. Moreover, the presence of the 100-day EMA at approximately $60,000 adds weight to this critical price range.
Market volume remains relatively neutral, exhibiting a slight downward trajectory that lacks the vigor to signal an imminent bullish reversal. This sentiment mirrors broader market caution, as evidenced by various risk indicators maintaining a cautious outlook.
Observations of long position liquidation contribute to a cooling momentum in perpetual markets. Amidst this consolidation phase, Bitcoin enthusiasts and traders closely monitor the cryptocurrency’s potential breakthrough above the $65,000 resistance threshold, which could inject fresh optimism and propel prices towards $70,000.
However, prevailing market sentiment leans bearish. Bitcoin’s failure to breach key EMAs, including the 26 and 50, alongside persistent high-risk signals from market indicators, underscores the current dominance of bears. Attention now turns to Bitcoin’s ability to sustain its position above $60,000 or face the prospect of succumbing to further selling pressure, solidifying the prevailing bearish trend.
