- Is Bitcoin safe now? Bitcoin attempted a major breakout, reaching $88,211, but was rejected, causing a 3.10% retreat.
- If Bitcoin can’t break through $85,000 soon, things might turn grim. The next logical support level lies around $78,258, a zone where buyers previously stepped in during minor corrections.
- Bitcoin is still inherently volatile, with every bull run coming with retracements and every correction breeding another rally.
Bitcoin has always been a symbol of financial revolution, a decentralized currency standing against traditional systems. But even revolutions have their periods of uncertainty. If you’re wondering, “Is Bitcoin safe now?”, the short answer is: not quite. The cryptocurrency giant is navigating turbulent waters, with key resistance levels pushing back and indicators flashing mixed signals.
Bitcoin’s Recent Struggle at Resistance Levels
Over the past week, Bitcoin attempted a major breakout, reaching up to $88,211 on Wednesday. This level is significant — it represents a 50% Fibonacci retracement from Bitcoin’s major swing low in November ($66,835) to its record high in January ($109,588). But Bitcoin couldn’t hold that level. It got rejected. In fact, after tapping $88,211, BTC retreated by 3.10%, setting off alarms among technical analysts and short-term traders. Another major hurdle? The $85,000 zone. This level aligns with two critical indicators:
- The 200-day Exponential Moving Average (EMA)
- A long-term descending trendline from its January peak
That convergence makes $85,000 a tough resistance wall. Bitcoin not only failed to break through but also didn’t close above it, signaling hesitation in the market.
The Downward Drift: Bitcoin Falls to $82,000
By Thursday, Bitcoin was hovering around $83,000. Come Friday, that slipped further — settling close to $82,000. This isn’t a catastrophic plunge by any means, but it adds to growing concerns that Bitcoin may be losing momentum. Traders and investors closely watch these short-term movements because they often signal bigger shifts on the horizon. If you’re familiar with technical analysis, the Relative Strength Index (RSI) is one of the most popular tools for measuring momentum. On the daily chart, Bitcoin’s RSI has dropped to 44. More importantly, it got rejected from the neutral 50 level on Tuesday, which is a red flag. This rejection suggests that bulls are losing control, and bears may soon take over. Should the RSI continue its descent, we might see even stronger selling pressure, potentially dragging Bitcoin below its current support levels.
Another crucial momentum indicator is the Moving Average Convergence Divergence (MACD). Right now, the MACD lines are uncomfortably close together — a classic signal of indecision in the market. This doesn’t immediately scream “sell,” but it also doesn’t provide a strong “buy” signal. In essence, traders aren’t sure which way to go, and that ambiguity often leads to sideways movement or unexpected volatility.
Why $78,258 Could Be the Next Line of Defense
If Bitcoin can’t break through $85,000 soon, things might turn a bit grim. The next logical support level lies around $78,258, a zone where buyers previously stepped in during minor corrections. If selling pressure increases, Bitcoin could test this level and if that breaks too, we could see a more extended pullback, potentially dragging BTC closer to $75,000 or even lower.
Bitcoin’s Volatility Isn’t Going Anywhere
Let’s not forget Bitcoin is still inherently volatile. That’s not a flaw; it’s part of the game. Every bull run comes with retracements, and every correction breeds another rally. But for now, safety is not guaranteed. Whether you’re a long-term HODLer or a short-term trader, the current technical indicators are flashing caution signs. A quick look at the Crypto Fear & Greed Index shows sentiment wavering between neutral and fear. Social media chatter reflects a blend of nervous energy and cautious optimism. While long-term Bitcoin bulls remain confident in its potential, short-term traders are pulling back, unsure of what’s next. Large institutional players, often called “whales” are also showing signs of restraint. On-chain data indicates fewer large BTC transfers in the past week, hinting that even big players are sitting on the sidelines for now.
Bitcoin Isn’t Safe Yet, But It’s Not Doomed Either
So, is Bitcoin safe now? Not quite. Bitcoin is stuck between critical resistance and underlying support. Technical indicators like RSI and MACD are pointing to bearish sentiment, and the failure to close above $85,000 is a clear signal of caution. Still, this isn’t uncharted territory for Bitcoin. The digital currency has danced around volatility since its inception. What’s important now is how BTC responds in the coming days whether it breaks higher or retreats further.
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Disclaimer: The information provided by CryptopianNews is for educational and informational purposes only. It should not be considered financial or investment advice. Cryptocurrency markets are highly volatile and speculative, and investing in them carries inherent risks. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
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