Bitcoin’s price has recently faced a significant hurdle as it failed to break above the $72,983 resistance level. This rejection has caused the cryptocurrency to drop from $71,942 to $66,785, signaling a potential change in character towards a bearish trend. The price of Bitcoin is currently trading above the 1-day Simple Moving Average (SMA), however, it has moved below the SMA on both the 1-hour and 4-hour charts, further indicating a downward movement in price.
As of the time of writing, Bitcoin was trading at around $67,635, with a slight increase of 0.14%. The cryptocurrency boasts a market capitalization of over $1.3 trillion and a 24-hour trading volume exceeding $25 billion. Despite the slight increase in price, both the market capitalization and trading volume have seen a decline of 1.14% and 6.07% respectively in the last 24 hours.
Analyzing the 4-hour timeframe, Bitcoin has dropped below the simple moving average, signaling a potential upcoming downward movement in price. Additionally, the 1-hour MACD indicates a bearish trend as the MACD histograms are trending below the zero line. The MACD line and the signal line have also crossed below the MACD zero line, further supporting the possibility of a bearish trend in the near future.
From the 1-day chart analysis, it can be observed that Bitcoin’s price is approaching the 100-day simple moving average. The 1-day MACD displays a formation that suggests a bearish trend in the price movement, with histograms trending below the MACD zero line. The MACD line and the MACD signal line have crossed below each other, indicating a potential downward movement in price.
Bitcoin currently faces one major resistance level at $73,203, along with two major support levels at $60,146 and $50,604. In the event of the predicted bearish trend, Bitcoin is likely to move towards the $60,146 support level. A break below this level could lead to further testing of the $50,604 support level. Moreover, there are additional support levels below $67,635 that Bitcoin might test if it breaks below the aforementioned support levels. However, if Bitcoin manages to stay above these support levels, it could potentially move upward towards the previous resistance level of $73,203. Breaking above this level could initiate a new rally, possibly setting a new all-time high for the cryptocurrency.
The technical analysis and indicators point towards an impending bearish trend for Bitcoin. Traders and investors should carefully monitor the support and resistance levels mentioned above to anticipate potential price movements and adjust their strategies accordingly.