Bitcoin (BTC), the world’s leading cryptocurrency, recently experienced a pullback, with its price heading towards the $66,736 level. This dip follows a period of significant bullish activity that had previously pushed the price of BTC above this level. With the price of crypto assets approaching this critical level, the key question is whether the bulls can do it too regain force and drives BTC back on an upward trajectory.
In this analysis, we will examine Bitcoin’s recent price movement using technical indicators and explore the possibility of a bullish recovery around $66,736.
With a market capitalization of over $1.3 trillion and a trading volume of over $29 billion, BTC’s price was up 0.62% to around $67,238 at the time of writing. The day before, BTC’s market value had increased by 0.68% and trading volume by 64.24%.
BTC’s Price Action and Technical Indicators: What Do They Signal?
Currently on the 4-hour chart, Bitcoin has formed two bearish momentum candlesticks moving towards the $66,736 level. Although BTC is still trading above the 100-day Simple Moving Average (SMA), the price could fall as low as $66,736 before starting to rise again.
Also, the 4-hour Composite Trend Oscillator indicates that BTC price could maintain its bearish trajectory towards $66,736 as the signal line has crossed below the indicator’s SMA, and both lines are currently trying to break out of the overbought zone.
On the 1-day chart, after successfully breaking above the $66,736 resistance level, Bitcoin is attempting a retest with a bearish move back to this level. It is also notable that since rising above the 100-day SMA, the cryptocurrency has maintained strong bullish momentum, suggesting that this current pullback could stop at the $66,736 mark.
Finally, the 1-day compound trend oscillator indicates that the price of BTC remains bullish as both the signal line and the indicator’s SMA attempt to rise above the zero line. BTC is also trading above the 1-day SMA, and based on these indicators, it can be suggested that the current pullback could be short-lived.
Potential Scenarios: Bullish Rebound or Further Decline for Bitcoin?
Based on current price action and technical indicators, Bitcoin’s price could drop to $66,736. If Bitcoin’s price If the price falls to this level and then rebounds, the price will start to rise towards the resistance level at $71,909. Should the price break above this resistance, it could continue rising, testing the $73,811 level and possibly moving further to create a new all-time high.
However, if the price of BTC falls to the $66,736 mark and closes below, it will continue to decline towards the $64,616 support level. When Bitcoin breaks below this level, it will fall further to test the $60,152 support range and possibly other lower levels.
Featured image from iStock, chart from Tradingview.com