"Support line collapses"...Bitcoin, blocked by resistance wall, further decline warning light

▲ Bitcoin (BTC)/ChatGPT generated image

Concerns are growing that Bitcoin (BTC)'s upward trend has been curbed after hitting a strong resistance wall at $71,200, potentially pushing it down to the high $60,000s in the short term.

According to NewsBTC, on April 13 (local time), Bitcoin continued its attempts to break past the $71,200 mark but failed to overcome strong selling pressure from above and entered a downward correction phase. Bitcoin's price once surged above $71,000, gaining momentum, but soon lost its steam and is currently trading below $70,500. Market analysts predict that if Bitcoin ultimately fails to secure the $70,200 support line, the price decline will become steeper.

Technical indicators support the market's pessimistic outlook. The Moving Average Convergence Divergence (MACD) accelerated its decline in the bearish zone, indicating strengthening selling pressure, while the Relative Strength Index (RSI) also fell below the 50 level, showing a contraction in investor sentiment. Currently, a massive resistance wall has been built around $71,200 and $71,500, making it difficult to expect a full-fledged rebound until it is broken.

If Bitcoin breaks below the $70,200 support line in the future, the next defense line will fall to the $69,200 level. If even $69,200 collapses, the decline is highly likely to continue in a chain reaction to the $68,500 range. Conversely, if Bitcoin confirms its downward support and reclaims the $71,200 resistance line, it will lay the groundwork for a new upward rally towards $72,500.

Market experts predict that Bitcoin's price movement will be determined in the short term by whether it holds support at the bottom of its trading range. The increase in Bitcoin net inflows within exchanges and fluctuations in open interest in the futures market are factors that increase market uncertainty. Analysts diagnose that securing price defense lines before a large volume of selling pours out is the key to determining the future price direction.

If Bitcoin fails to overcome the technical obstacles it currently faces, a short-term correction is deemed inevitable. Investors should closely monitor rebound signals at key price support lines and trading volume trends to respond nimbly to market changes. Global investors are focusing on Bitcoin's short-term movements at the crossroads of breaking resistance and defending support.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*