Bitcoin, Support Lines Collapse One After Another...Is It Pushed to the $73,500 Defense Line?

▲ Bitcoin (BTC) Decline

Bitcoin (BTC) has been pushed back from the $77,800 range and has given up the key support level of $76,500, rapidly weakening short-term recovery expectations.

According to crypto media outlet NewsBTC on May 27 (local time), Bitcoin began a downward correction from the $77,800 range and is showing increasing bearish signals. Bitcoin failed to hold above $77,000, extended its losses, and traded below $76,800 and the 100-hour simple moving average.

After failing to break through the $77,500 resistance zone, Bitcoin fell below the key support level of $76,500, entering a bearish zone. Kraken data for the BTC/USD hourly chart also confirmed a breakout from a descending channel with support at $76,250. Furthermore, it dropped below the 50% Fibonacci retracement level of the upward move from the $74,210 low to the $77,810 high.

Analysis suggests that for a short-term rebound, the price needs to maintain stability above $75,500. Immediate resistance is at $76,000, with the first major resistance at $76,250. If the closing price forms above $76,250, a retest of the $77,000 resistance is possible, and the next resistance is presented at $77,200.

In case of further upside, Bitcoin could aim for $78,000, but the key obstacle for the bulls is identified at $79,500. Conversely, if it fails to overcome the $76,500 resistance zone, the downtrend could resume. Immediate support is at $75,550, which coincides with the 61.8% Fibonacci retracement level of the rise from the $74,210 low to the $77,810 high.

Major support levels are presented at $75,000 and $74,200. If it drops to $74,200, the $74,000 support level could be retested in the short term. The current critical support level is $73,500, and analysis suggests that if Bitcoin falls below this price point, it may struggle with a short-term recovery.

Technical indicators also lean bearish. The hourly Moving Average Convergence Divergence (MACD) is accelerating its decline in the bearish zone, and the hourly Relative Strength Index (RSI) remains below 50. NewsBTC suggested major support levels at $74,200 and $73,500, and major resistance levels at $76,500 and $77,000.

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