• Bitcoin faced resistance at the $31,000 area before receiving bearish pressure.
• BTC has experienced losses within the last 24 hours and a week-on-week decline.
• Some technical indicators have signaled bearish momentum; however, some are showing signs of turning bullish.

In light of insinuations from the U.S. Federal Reserve authorities regarding a potential quarter-point increase in interest rates at the imminent May policy rate gathering, repercussions have reverberated across diverse markets.

Bitcoin (BTC) currently stands at a precarious $28,165, teetering just below the critical $28,000 threshold early on Friday, extending its downward trajectory for two consecutive days. The cryptocurrency, commanding the highest market capitalization, has encountered a recent downturn of 2.5% within the past 24 hours, as per data from CoinMarketCap.

4-Hourly Bitcoin Trends 

BTC has been trading below the 9-day and 21-day moving averages following the reversal in the $29,900 area. With its ongoing downward trajectory, Bitcoin is now facing potential resistance at the local high of $31,000, should it manage to hold above the upwards-sloping support being retested at the time of writing.

Daily Bitcoin Trends

Bitcoin’s price analysis on the 24-hour chart reveals an increase in bearish pressure in the past two days, following a prolonged period of a bullish trend. After reaching the $31,000 level, the buying pressure weakened, resulting in a sharp downturn. BTC has suffered a loss of 2.32% within the last 24 hours and a week-on-week decline of 5.3%.

Weekly Bitcoin Trends

On the weekly chart, Bitcoin’s price appeared to have established a solid bottom in the last quarter of 2022, leading to an explosive rally. Year-to-date, BTC has delivered an impressive performance of 70%, reaching a local top of $30,968. The recent leg up in Bitcoin’s price has pushed it into a zone where the asset faces significant selling pressure.

Key Chart Information

The Relative Strength Index (RSI) for the 4-hour timeframe has descended into oversold territory, hinting at a potential halt to the recent bullish momentum of Bitcoin. 

Should the coin breach the channel’s lower boundary, it could potentially plummet toward the support level of $26,000 or even lower.

Adding to the bearish outlook, the Moving Average (MA) currently stands above the prevailing price value at $29,965, indicating a persisting negative sentiment in the market. Meanwhile, the RSI sits at 50.73, reflecting a neutral stance for the coin.

Delving into the daily technicals, the Moving Average Convergence Divergence (MACD) has undergone a bearish crossover, signaling a potential continuation of the ongoing downward trend. 

Notably, the signal line is positioned above the MACD line, further suggesting an impending strengthening of the bearish momentum in the upcoming trading sessions.

It’s worth mentioning that many weekly technicals are often overlooked as they take several months for significant information to form.

On the Flipside

• Bitcoin’s price showed a remarkable performance in 2022, delivering an impressive year-to-date gain of 70% and reaching a local top of $30,968.
• The support level of $26,000, speculated as a potential target for Bitcoin’s price, may not be reached, as the coin is currently retesting an upward-sloping support.
• Technical indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are showing a potential halt to the recent bearish momentum, indicating a possible reversal in the near future.

Why You Should Care

Being the leading cryptocurrency with the highest market capitalization, Bitcoin’s performance significantly impacts investor sentiment and market trends. As BTC teeters below critical support levels and encounters bearish pressures, it signals potential changes in market dynamics

To learn more about Tesla’s decision to hold onto its $184 million Bitcoin stash despite a drop in net income, read here:

Tesla Keeps $184M Bitcoin Stash Despite 20% Net Income Drop

Curious about how proposed House bills on regulations may impact stablecoin issuers? Find out more here:

House Bill Regulatons: Can Stablecoin Issuers Survive the Proposed Bill?

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• Source: https://dailycoin.com/bitcoin-price-updates-breakdowns-projections/