The Bitcoin price has once again encountered resistance represented by the descending 20-DMA to suffer substantial losses on Wednesday. Today, the coin stays pressured, with the near-term downtrend remaining in place both on the daily and weekly charts.
Following failed attempts to regain the $39,000 figure earlier this week, the largest cryptocurrency by market capitalization slipped back below the $37,000 figure. Earlier in the day, the BTC/USD pair dropped to nearly one-week lows around $36,200 before rebounding marginally in recent trading.
The fact that bitcoin keeps attracting sellers on bullish attempts suggests the bears remain in control at this point. Interestingly, despite a recent plunge in prices, long-term crypto investors keep accumulating the digital coin. This, in turn, implies that the prices could go to even lower levels before attracting demand. In this scenario, BTC can retest the $33,000 figure that capped the sell-off last month.
Should this zone give up, the $30,000 critical support will come back into the market focus for the first time since July 2021.
Of note, there is a significant support level represented by a slightly ascending 100-week SMA that arrives just below the $32,000 mark. As long as the prices stay above this threshold for sellers, the downside potential stays limited. On the upside, the coin needs to make a decisive break above the $39,000 area to turn the $40,000 figure back into support.
Despite the persisting bearish pressure dominating the cryptocurrency market since November, the long-term outlook for bitcoin remains upbeat as the digital asset keeps striding towards mainstream acceptance globally.