Bitcoin’s recent failure to break above the $72,983 resistance level has resulted in a downward trend in its price. Despite trading above the 1-day Simple Moving Average (SMA), the rejection has caused the crypto asset to drop to $66,785, moving below the SMA in both the 1-hour and 4-hour charts. This decline below the SMA has the potential to signal a shift towards a bearish trend. At the time of writing, Bitcoin was trading at around $67,635, up by 0.14%, with a market capitalization exceeding $1.3 trillion and a 24-hour trading volume surpassing $25 billion. However, the market capitalization and trading volume have decreased by 1.14% and 6.07%, respectively, in the last 24 hours.
From the 4-hour timeframe, it is evident that BTC has fallen below the simple moving average, indicating a possible downward movement in its price. The 1-hour MACD also suggests a bearish outlook, as the MACD histograms are trending below the zero line. Additionally, the MACD line and the signal have crossed below the MACD zero line, further supporting the bearish sentiment. On the 1-day chart, Bitcoin’s price is approaching the 100-day simple moving average, with the 1-day MACD forming a pattern that indicates a potential bearish trajectory. The MACD line and the MACD signal line have intersected and are moving towards the MACD zero line. These technical indicators point towards a significant drop in BTC price and the initiation of a bearish trend.
Currently, there is a major resistance level at $73,203, along with two major support levels at $60,146 and $50,604. If Bitcoin follows the predicted bearish path, it is likely to move downwards towards the $60,146 support level. A further breakdown below this level could lead to testing the $50,604 support level. There are additional support levels below $67,635 that BTC may test if it breaches the $60,146 and $50,604 support levels. However, failure to break below any of the mentioned support levels would prompt an upward movement towards the previous resistance level of $73,203. In the event of surpassing this level, Bitcoin might initiate a new rally, potentially reaching a new all-time high.
By carefully analyzing the current market trends, technical indicators, and support/resistance levels, it is evident that Bitcoin is on the brink of a bearish trend. Traders and investors should closely monitor these developments and adjust their strategies accordingly to navigate the volatile cryptocurrency market effectively.
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