Cryptocurrency Bitcoin has seen a sharp decline below the psychologically significant price level of $29,000 in the early hours of today's trading session. This meant that the losses from the peak at around $30,461 earlier this week have been locked in and further declines might be on the table.

Buyers had the chance to cause some relief when Bitcoin attempted to push past the resistance at the $30,250 level, yet the digital coin failed to do so and started to plunge. This led to Bitcoin slamming into the $29,000 threshold in an aggressive manner and dipping beneath it.

At press time, Bitcoin is trading at $28,700 as it consolidates around the 23.6% Fib Retracement level form the recent decline from $30,461 high to $28,577 low. A breakdown past the immediate support at $28,500 might indicate that more volatility can be expected with the price of the digital coin heading towards $28,000 in the near future.

Technical indicators continue to point at a bearish outlook since the hourly MACD is currently in the bearish zone and the RSI has fallen below the 50 level as well. In addition to the noted support and resistance levels, investors and traders wishing to open positions should also keep an eye out on the $29,250 mark which provides some resistance to Bitcoin's next rally attempt.

In summary, Bitcoin is in a vulnerable spot at the moment, trying to battle its way back towards the $30,000 mark, however further losses might be on the cards if the $28,500 support level fails to hold any further declines. Technically, elements such as the MACD and RSI hint at bearish outlook, whereas essential resistance and support levels should be used as guides for entering positions.



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