The recent failure of Bitcoin to break above the $72,983 resistance level has triggered a downward trend in its price. Currently, Bitcoin’s price is hovering around $67,635, showing a slight increase of 0.14%. However, the rejection at the resistance level has caused the price to drop from $71,942 to $66,785. Additionally, the price has moved below the 1-day Simple Moving Average (SMA) in both the 1-hour and 4-hour charts, indicating a potential change in character that could lead to a bearish trend.
Technical Indicators
Analyzing the technical indicators further reveals a bearish outlook for Bitcoin. The 4-hour timeframe shows that BTC has dropped below the simple moving average, signaling a potential downward movement in price. Moreover, the 1-hour MACD indicates a bearish trend as the MACD histograms are trending below the zero line and the MACD line has crossed below the signal line.
Looking at the 1-day chart, Bitcoin’s price is approaching the 100-day simple moving average, suggesting a possible bearish scenario. The 1-day MACD also supports this hypothesis as the histograms are already below the MACD zero line, with the MACD line and the signal line crossing each other and heading towards the MACD zero line. Combining the price formations and MACD analysis from both timeframes, Bitcoin could experience a significant drop and initiate a bearish trend.
Currently, Bitcoin faces one major resistance level at $73,203 and two major support levels at $60,146 and $50,604. If the predicted bearish scenario plays out, Bitcoin is likely to move towards the $60,146 support level. A breakthrough below this level could lead to further testing of the $50,604 support level. However, there are additional support levels below $67,635 that Bitcoin could test if it breaks below the $60,146 and $50,604 levels.
Future Outlook
The future trajectory of Bitcoin’s price hinges on its ability to break below the support levels or surpass the resistance level. If Bitcoin fails to breach any of the mentioned support levels, it may start moving upwards towards the previous resistance level of $73,203. On the other hand, surpassing this resistance level could spark a new rally and potentially establish a new high for Bitcoin.
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