In the previous 24 hours, bears strengthened their hold on BTC price, which fell from $29,320.13 to $28,933.74. At press time, BTC was trading at $29,107.02, down 0.59% from its recent high. The multi-contact point trendline, originating from the 2023 bottom, is now under serious scrutiny as bearish momentum threatens to break through.

Bitcoin seriously challenging multi-contact point trendline from 2023 bottom. Move through Aug low would be bear signal or bear trap. $BTC pic.twitter.com/FR5eqwgJis

— Peter Brandt (@PeterLBrandt) August 16, 2023

However, there’s hope for Bitcoin enthusiasts. The $28,933.74 support level represents a crucial line of defense. If bears breach this level, the next support is around $28,800. Significantly, this level has historically acted as strong support and could attract buyers to prevent further decline.

Moreover, the market capitalization of Bitcoin has dipped by just 0.62% to $566,398,762,995 during this recession. In contrast, its 24-hour trading volume surged by 20.25% to $14,172,016,761. This indicates that there is still robust interest in BTC, even amid the bearish momentum.

BTC/USD technical Indicators 

The stochastic RSI, with a reading of 19.40 and pointing downward, suggests that the bearish momentum is currently strong. Consequently, selling pressure may continue soon, pushing prices lower. However, a bullish reversal remains possible below the oversold threshold of 20.

Source-TradingView

Meanwhile, the RSI, having shifted below its signal line with a reading of 42.93, indicates that the market sentiment leans towards bearishness. Hence, a further price decline may be anticipated as the RSI has not yet reached oversold levels.

Besides these, the Chaikin Money Flow (CMF), currently at a positive reading of 0.14, suggests that there is still some buying pressure in the market. This trend could drive a bullish reversal, as the buying pressure may increase prices.

Bullish recovery or bearish breakdown?

As Bitcoin tests the waters at this critical support level, a recovery hinges on how the cryptocurrency responds. If BTC price bounces back above the $29,200 resistance level, it may signal a shift in sentiment, attracting more buyers and leading to a bullish recovery. However, we may witness further price declines if the bears breach the $28,933.74 support level.

In conclusion, while the bearish momentum poses a challenge, the potential for a bullish rebound remains. By monitoring Bitcoin’s response to the current support levels, investors can better understand the cryptocurrency’s future trajectory.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.