Bitcoin, Fall Warning Before Rebound...Will it Drop Below $70,000?

▲ Bitcoin (BTC), Bear Market/AI Generated Image ©

Bitcoin (BTC) failed to defend the $76,000 level and dropped to the $74,000 support line, leading to greater caution about further declines rather than a short-term rebound.

According to crypto media outlet NewsBTC on May 28 (local time), Bitcoin began a new downward trend below the $75,500 range. NewsBTC analyzed that Bitcoin extended its losses after failing to stay above $76,000, and trading continues below the 100-hour simple moving average.

Bitcoin previously failed to hold the $76,200 support zone and successively fell below $75,800 and $75,500. It then dropped below $75,000, forming a low of $74,050, and is struggling below the 23.6% Fibonacci retracement level of the downward leg from the high of $77,810 to the low of $74,050.

NewsBTC suggested that if Bitcoin manages to hold above $74,000, it could attempt a rebound. Immediate resistance is near $74,800, and a bearish trend line with resistance at $74,850 is forming on the Bitcoin/Dollar 1-hour chart. The first key resistance level is set at $75,500.

An analysis suggests that if the $75,500 resistance level is breached on a closing basis, it could test the $75,950 resistance or the 50% Fibonacci retracement level of the downward leg. If further gains continue, it could head towards $76,400, with the next barrier for the bulls set at $77,800.

Conversely, if Bitcoin fails to overcome the $75,950 resistance zone, further declines could begin. Immediate support is at $74,000, with major support levels at $73,500 and $73,200. An analysis suggests that if losses deepen, it could target the $72,000 support level in the short term, and recovery could become difficult below the crucial $70,000 support. The 1-hour Moving Average Convergence Divergence (MACD) is gaining momentum in the bearish zone, and the 1-hour Relative Strength Index (RSI) remains below 50.

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