After a brief break above $66,000, the price of Bitcoin fell back and fell below several key levels, allowing bears to regain control of the market. Even though the current Bitcoin price shows signs of recovery, the bear camp is still strengthening and has failed to break through the MA-200 EMA recently, which indicates that the upward trend may only be brief and may face a greater decline in the future.

Negative effects of Bitcoin falling below the MA-200

According to cryptocurrency analyst RLinda's analysis, Bitcoin has tried to break through the MA-200 level, targeting the resistance level of $64,000 to $65,000. However, this level was too strong, causing prices to be suppressed once again.

The loss of MA-200 caused Bitcoin to form a descending channel, which is usually a precursor to a crash. Meanwhile, the price has broken through the range boundary, forming a strong liquidity zone, and analysts believe that the market may decline further.

As bears dominate the market, it seems only a matter of time before the Bitcoin price pullbacks again, and analysts expect at least a 10% drop, possibly falling below $60,000 again.

The key resistance andSupport level

Analysts pointed out that $62,745 and $64,955 are the main resistance levels, and only a successful break through these two levels will confirm the upward trend. Relatively speaking, support levels are set at $60,000, $59,250, and $57,700. If Bitcoin fails to maintain these levels, the decline could be even deeper, down to $52,000.

Potential Factors to Alleviate Bearish Pressure

Another analyst, Alan Santana, also highlighted the bearish pressure brought about by Bitcoin's failure to break through the MA-200. He pointed out that the current price is below MA-200, which reinforces the market's bearish bias and indicates a possible decline in the future

However, several factors may ease the bearish pressure. First, if Bitcoin can close above $66,500 on the weekly chart; second, if it closes above $71,000 on the monthly chart, both of these situations will help eliminate the current bearish pressure. The bearish trend will continue as long as the price of Bitcoin is below $66,500 (short term) or $71,000 (long term).