Bitcoin is currently experiencing a remarkable decline, with the price steadily approaching the crucial $60,000 mark. Market sentiment has become increasingly bearish, driven by a combination of macroeconomic factors and a recent increase in selling pressure.
This shift has left Bitcoin struggling to maintain higher levels, causing unrest among investors and traders. As the bears take control, the $60,000 threshold becomes a point of interestwith many watching closely to see if the crypto asset can find support or continue its downtrend.
Using technical indicators, this analysis focuses on analyzing Bitcoin’s current price action and its impact on the asset’s future, focusing on the 4 hour and 1 day time frame.
At the time of writing, Bitcoin’s market cap is over $1.2 trillion, with a trading volume of over $17 billion. The cryptocurrency price is now down 3.11% and is trading at around $62,334. Despite a 3.09% drop in market capitalization, trading volume has increased by 96.46% over the past day.
Current Market Overview for Bitcoin
As seen on the 4-hour chart, the price of Bitcoin is currently actively bearish and has fallen massively below the support level at $64,515. Here it can also be noted that the price is declining towards the USD 60,158 support level.
The 4-hour Relative Strength Index (RSI) also confirms the above statement, as the indicator’s signal line has fallen sharply below 50% and is currently trending in the oversold section. This indicates that there is a chance of a further price drop.
Bitcoin’s price on the 1-day chart is also actively bearish as it is currently trading below the 100-day Simple Moving Average (SMA) and heading towards the $60,158 support level with strong bearish momentum.
Finally, with the formation of the 1-day RSI, it can be suggested that the price of BTC poses a greater threat to the extension of the decline, as the signal line of the indicator, which has fallen below 50%, is active near the oversold zone moves.
Key Support Levels: Why $60,158 Matters
Currently, BTC is declining towards the $60,158 support level. Two possible events can occur when the price reaches this level: the price experiences a rejection and starts moving up, or the price exceeds this level and continues to move down.
Therefore, if there is a rejection at the USD 60,158 support level, BTC may start rising towards the USD 64,515 resistance level. If this level is breached, the crypto asset could experience more price growth towards the $71,909 resistance level and possibly other levels above.
On the other hand, if the price of BTC falls below this support level, it will continue to fall to test the $56,524 support level. Should this level be broken, Bitcoin could do so reject even further, testing the $50,604 support level and perhaps even lower levels.
Featured image from iStock, chart from Tradingview.com