Bitcoin, the flagship cryptocurrency, is currently experiencing a significant decline in its price, hovering closer to the crucial $60,000 mark. The overall sentiment in the market has turned bearish, fueled by a combination of macroeconomic factors and a recent surge in selling pressure. This shift has left Bitcoin struggling to maintain higher price levels, sparking concerns and unease among investors and traders alike.
With the aid of technical indicators, a closer analysis of Bitcoin’s current price action and its potential impact on the asset’s future can be conducted, focusing on the 4-hour and 1-day timeframe. At the time of writing, Bitcoin boasts a market capitalization of over $1.2 trillion, accompanied by a trading volume exceeding $17 billion. Despite the 3.11% decrease in price, the trading volume has surged by a staggering 96.46% over the past day.
Upon observing the 4-hour chart, it is evident that the price of Bitcoin is on a bearish trend, having dropped significantly below the $64,515 support level and edging closer to the $60,158 support level. The 4-hour Relative Strength Index (RSI) further reinforces this bearish sentiment, with the signal line of the indicator plummeting below 50% and currently residing in the oversold territory. This suggests a potential for further price decline in the near term.
On the 1-day chart, Bitcoin’s price trajectory remains bearish as it trades below the 100-day Simple Moving Average (SMA), descending towards the $60,158 support level with a robust bearish momentum. Additionally, the formation of the 1-day RSI signals a looming threat of extended price decline, as the signal line of the indicator dips below 50% and approaches the oversold zone. The current trajectory indicates that Bitcoin is heading towards the $60,158 support level.
As Bitcoin approaches the critical $60,158 support level, two potential scenarios may unfold: either a rejection at this level followed by an upward movement or a breach of the support level leading to further downside.
Should a rejection occur at the $60,158 support level, Bitcoin could start moving upward towards the $64,515 resistance level. A successful breach of this level could pave the way for additional price growth, potentially targeting the $71,909 resistance level and beyond.
Conversely, if Bitcoin’s price breaks below the $60,158 support level, it is likely to continue its descent towards the $56,524 support level. A breach of this level could trigger a more substantial decline, testing the $50,604 support level and potentially lower thresholds.
Bitcoin is currently navigating a bearish trend characterized by significant selling pressure and a challenging price landscape. Investors and traders are advised to closely monitor key support and resistance levels to gauge the cryptocurrency’s future price trajectory accurately.
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