FIL dips 8% as Bitcoin struggles

• Filecoin (FIL) risks deeper pullback as price retreats to key level.
• FIL traded near $4.6 on Friday afternoon, about 8% down in the past 24 hours.
• If prices fall further, bulls could rely on primary support near $3.1 to $2.7

Filecoin (FIL) price is likely to retreat below a critical support level after the altcoin’s performance mirrored the struggles seen in the Bitcoin (BTC) market in the past 24 hours. Filecoin price was changing hands around $4.6, down roughly 8%.

FIL price outlook – will bulls hold onto gains?

While bulls could rebound off the $4.2 price level, the technical outlook presents a potential dip to lower buffer areas.

The 8% decline in FIL value the past 24 hours adds to this observation, particularly if Bitcoin, Ethereum and other top alts fail to find a bounce to stem current bleeding.

In terms of a bearish outlook, Filecoin risks falling to the $3.9 support line, with extended downward pressure here likely to push FIL/USD to the critical demand reload zone between $3.1 and $2.7.

However, the 19% decrease in daily trading volume points to a potential flip in sell pressure.  As such, the opposite setup could see FIL rebound off the $4.2-$4.4 area to reclaim $5.0 as support.

If this happens, a move to the recent six-month peak above $5.6 could allow bulls to attack $6.5. The short term picture could pave way for more bullish movements should the broader market provide favourable conditions.