Bitcoin recently faced a significant rejection at $62,498 resistance level, underscoring the prevailing bearish dominance in the market. This inability to break a critical threshold underlines the strength of the selling pressure and raises concerns about possible downside trends.
The rejection at this key level signals caution among traders and investors, prompting a reassessment of market strategies. As bearish momentum continues, this analysis examines the possible outcomes for Bitcoin’s price movement and the broader implications for the cryptocurrency market.
At the time of writing, Bitcoin’s market cap is over $1.2 trillion, with a trading volume of over $27 billion. The cryptocurrency price is currently up 1.2% and is trading at around $61,582. Despite a 31.26% increase in market capitalization, trading volume has fallen by 35.43% over the past day.
Technical Indicators: Signs of continued bearish pressure
BTC price on the 4-hour chart is still actively bearish and trading below the 100-day Simple Moving Average (SMA). Currently, Bitcoin is trying to make a downward move after a rejection of $62,498, which is represented by a blue line on the chart.
The formation of the 4-hour William Alligator indicates that the price of BTC could extend its bearish trend as there is no successful intersection of both the alligator lip and the tooth above the alligator jaw.
The 1-day chart shows Bitcoin’s price making a huge decline after being rejected for the second time at the $62,498 level, indicating more bearishness even if trading remains below the 100-day SMA.
Moreover, the 1-day William alligator also indicates more bearishness for BTC. After a successful intersection of the alligator lip and teeth under the alligator jaw, they have maintained a good distance from each other.
It should be noted that the price of the crypto asset, from an overall perspective, is actively bearish. Considering the formation of the price action and the indicators on both the 4-hour and 1-day chart, it can be seen that the bears currently dominate the market.
Potential Scenarios: What’s Next for Bitcoin?
An analysis of possible future scenarios for BTC’s price movement after the rejection shows that if Bitcoin continues to decline and settle below the $60,152 support level, it could move lower to test the $58,523 support level and likely continue testing other lower levels if the price exceeds this level.
However, if there is a rejection at the USD 60,152 support level, Bitcoin could move higher 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.
Featured image from iStock, chart from Tradingview.com