After experiencing a pullback, the price of Bitcoin has continued its downward movement, failing to break above the 100-day Simple Moving Average (SMA) and the trend line. This has resulted in a drop of over 6% from its previous high. The big question on everyone’s mind is whether the price of BTC will continue on its downward trajectory or reverse and start moving in an upward direction.
As of the time of writing, the price of Bitcoin was trading around $62,972, marking a significant 28% decrease from its all-time high. Additionally, the price was down by 1.27% in the last 24 hours. While the price is currently trading below the 100 SMA on the 4-hour chart, it is still trading above the 100 SMA on the daily chart. This discrepancy in moving averages indicates a potential shift in market sentiment.
Technically, a support level of $59,653 and a resistance level of $67,255 have been formed based on recent price movements. However, if the price of Bitcoin continues to move downward, there could be more support and resistance levels created in the near future. These levels play a crucial role in determining the potential direction of the market.
Analyzing the 4-hour moving average, it is evident that the price of Bitcoin is trending below the 100-day moving average. This suggests a strong downtrend and the possibility of further downward movement. The Relative Strength Index (RSI) indicator on the 4-hour chart confirms this sentiment, as the RSI signal has crossed below the 50% line, indicating a bearish trend.
Moreover, the MACD indicator from the 4-hour chart also supports the bearish outlook, with the MACD histograms trending below the zero line. Both the MACD line and the Signal line have crossed below the MACD zero line, further reinforcing the bearish trend in the market. These technical indicators collectively point towards a continued downward movement for the price of Bitcoin.
Based on the current setup of technical indicators and price action, it can be inferred that Bitcoin is still bearish. If the price continues to move downward and breaks below the support level of $59,653, it could trigger a deep correction and potentially establish a new support level. On the other hand, if the price fails to breach this support level, it may initiate an upward correction towards the resistance level of $67,255.
Ultimately, breaking above the $67,255 level could signal the beginning of an uptrend for Bitcoin. However, given the current market conditions and technical signals, the likelihood of a reversal in trend remains uncertain. Traders and investors are advised to exercise caution and conduct thorough research before making any investment decisions.
Disclaimer: The information provided in this article is for educational purposes only and does not constitute investment advice. Readers are encouraged to do their own research and consult with financial professionals before making any investment decisions. Trading and investing in cryptocurrencies involve inherent risks, and individuals should proceed with caution.