Bitcoin's Repeated Failures at $79,400 Spark Downside Concerns

Bitcoin's recent failed breakouts have caught the attention of bulls and bears alike. With three attempts to breach $79,400 ending in rejection, momentum is fading, and another failure could open the door for a price drop.

The cryptocurrency has been struggling to surpass this level, with each attempt resulting in a shooting star candle on the charts. The Relative Strength Index (RSI) is still in overbought territory, but marginal bearish divergence is developing against the price action.

While none of these signs alone justify shorting Bitcoin, repeated failures may indicate that someone or some group doesn't want it to establish itself above $79,400 and make a run towards the May swing highs. If another failure occurs, shorts could be set beneath this level with a tight stop above for protection against a reversal.

The first downside target is $78,000, followed by $76,000, which both saw significant price action earlier in the year. Beyond that lies the more important support and resistance zone of $73,500, $74,500, an area that has previously launched substantial moves in both directions. If the unwind gathers speed, this would be the ultimate downside target.