- Trading Volume has surged, confirming stronger selling pressure during the price drop sessions.
- The Death Cross and Fibonacci levels indicate more upcoming price declines.
The Bit price [BTC] continues to decline, trading at $82,499 at the time of writing, after breaking through key support levels.
This cryptocurrency is currently facing increasing downward pressure, with technical indicators suggesting an extended correction period.
In addition to technical concerns, renowned analyst Ali Charts has tweeted that Bit has witnessed a crossover between the 50-day and 100-day moving averages on the daily chart.
Source: X
This indicates a shift in the underlying momentum that traders should closely monitor.
Death Cross Confirms Downtrend
A Death Cross - a famous bearish signal - was confirmed in February when Bit's 50-period moving average fell below the 200-period moving average on both the daily and 12-hour timeframes.
Source: TradingView
History shows that this crossover typically signals an extended price decline.
Source: TradingView
Bit's 50-period moving average is $97,041 at the time of writing, while the 200-period is at $91,631. This reinforces strong resistance levels above the current price.
BTC has not yet shown signs of a trend reversal, still trading below these key levels.
Fibonacci Levels Suggest Further Declines
Previously, Bit failed to break above the 50% Fibonacci retracement level at $85,723. It is currently testing the 23.6% retracement at $82,902, an important short-term support.
A decisive break below this zone could lead to a deeper correction towards $80,380, representing the 0% Fibonacci retracement from the recent highs.
Source: TradingView
The rejection of BTC near $88,181, corresponding to the 61.8% Fibonacci level, suggests that the upside attempts have been weak, further confirming the downward pressure.
RSI Approaches Oversold Territory
The Relative Strength Index (RSI) is at 40.70 at the time of writing, indicating weak momentum but not yet in oversold territory (<30).
Source: TradingView
Previous lower RSI levels of 33.79 and 16.73 indicate that Bit has experienced deeper corrections before significant bounces.
A drop below 30 RSI would signal an oversold condition, potentially foreshadowing a short-term reversal.
Volume Trend Reinforces Selling Pressure
Volume analysis shows a surge in selling activity during the price drops, confirming a market dominated by bearish sentiment.
However, if Bit experiences volume depletion during subsequent declines, it could signal seller fatigue, potentially setting the stage for a short-term recovery.
Bit has tested the $82,902 level, the 23.6% Fibonacci retracement, at the time of writing, which serves as the nearest support. Maintaining above this level is crucial to prevent further downside.
A collapse below $82,902 could push Bit towards $80,380, the 0% Fibonacci retracement, marking an important support zone.
Key Support and Resistance Levels to Monitor
On the upside, Bit faces strong resistance at the $85,723 level, the 50% Fibonacci retracement. A decisive break above this level could shift the momentum and allow Bit to test the $88,181 level, the 61.8% Fibonacci retracement.
However, if Bit fails to reclaim the $85,723 level, the downward pressure may continue, increasing the likelihood of further declines. Traders should closely monitor the price action at these levels to confirm the continuation or reversal of the trend.
With the Death Cross still in play and the 50/100-day moving average crossover observed by Ali Charts, BTC remains in a medium-term downtrend unless significant buying pressure emerges.
Traders should monitor the RSI levels and volume trends at the key support levels to assess the potential for a reversal signal.
