Bitcoin lost its footing on Thursday, slipping below a key support level and breaking a bullish trend line on the hourly chart. The move extended losses after the cryptocurrency failed to hold above resistance earlier in the week, according to data from Kraken. Technical indicators are now flashing bearish, raising the chance of further downside.
The technical picture sours
The breakdown pushed Bitcoin below a major Fibonacci retracement level of its recent upswing — a move from the low to the high over the past several sessions. It's now trading under the 100-hour simple moving average, and the MACD momentum indicator has turned negative. Together, these signals suggest sellers have taken control of short-term momentum.
A trend line snaps
The bullish trend line on the hourly chart had been intact for days, providing a floor for pullbacks. That line broke alongside the support level, catching some traders off guard. Volume picked up during the move, confirming the breakdown wasn't a false alarm.
What traders are watching
With the $62,500 area now acting as resistance, attention shifts to the next lower zone — the region where the recent rally began. If Bitcoin fails to hold there, the short-term trend could turn fully bearish. The weekly close on Sunday will be critical to see if buyers can reclaim the broken level and the trend line, or if sellers keep the pressure on.
