As of May 12th, 2023, the price of Bitcoin has experienced a notable decline, sparking concerns and discussions within the cryptocurrency community. This post aims to explore the factors contributing to the recent dip in Bitcoin's price and provide insights into the potential causes behind this downward movement.

Bitcoin price is declining below $28,000. BTC has the potential to break below the $25,000 support level in the short term.

Bitcoin struggles to recover above the resistance levels of $27,500 and $27,800.

Price is below $27,500 and the 100-hour simple moving average.

There are two bearish trend lines on the hourly chart of the BTC/USD pair with resistance near $27,000 and $27,800 (data from Kraken).

The pair could continue to decline if it breaks the $26,750 support area.

Bitcoin Price Continues Downtrend

Bitcoin price failed to initiate a recovery wave above $27,800. BTC remains in the bearish zone and closed below the $27,500 support area.

Bears were able to push the price below $27,000. Forming a low near $26,720, the price now shows many bearish signs. Its trading price remains below $27,500 and the 100-hour simple moving average. There are also two bearish trend lines on the hourly chart of the BTC/USD pair with resistance near $27,000 and $27,800.

Bitcoin's price may face sellers near $27,000 or the 23.6% Fibonacci retracement level of the recent decline from the $28,335 swing high to the $26,720 low.

The next major resistance is near $27,350. The main resistance is now forming near the next trend line and $27,800. It is close to the 50% Fibonacci retracement level of the recent decline from the $28,335 swing high to the $26,720 low.

A close above the $27,800 resistance level and the 100-hour simple moving average could initiate a significant upward move. The next key resistance level is near $28,000, and above this price, it could climb to the $28,500 resistance level.

More BTC Losses?

If Bitcoin's price fails to break the $27,500 resistance level, it may continue to decline. The immediate support level on the downside is near $26,750.

The next major support level is near the $26,500 area, and below this zone, the price may gain bearish momentum. In this case, it could retest the $26,000 level. Any further losses could bring Bitcoin to the $25,000 level in the short term.

Technical indicators:

Hourly MACD - The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) - The RSI for BTC/USD is now below the 50 level.

Major Support Levels - $26,750, followed by $26,000.

Major Resistance Levels - $27,000, $27,350, and $27,800.