Bitcoin (BTC) is currently experiencing increasing bearish pressure, with technical indicators pointing to a potential decline towards $63,316. This price drop is caused by factors such as weakening momentum and declining trading volume.
Like Bitcoin goals The limit of $63,316 has been reached. Investors and analysts are closely watching this development as it could signal further declines and pave the way for BTC to test lower support levels. This article analyzes the current price movements of Bitcoin and technical indicators This signals a potential further decline for the cryptocurrency, focusing on the 4-hour and 1-day chart.
Bitcoin currently has a market cap of over $1.3 trillion and a trading volume of over $39 billion. At the time of writing, the price had fallen 3.81% and was trading around $66,814 over the past 24 hours. During this period, the asset’s market capitalization has fallen by 3.84%, while trading volume has increased by 70.25%.
Technical Analysis: Key Bearish Indicators
On the 4-hour chart, the price of BTC looks bearish as it is currently falling towards the 100-day Simple Moving Average (SMA). It can also be noted here that Bitcoin price has pushed several bearish candlesticks as it approaches $63,316. support level.
The Composite Trend Oscillator on the 4-hour chart further indicates a bearish trend as both signal lines have fallen below the indicator’s SMA and are heading towards the zero level. If the price continues to decline as the indicator suggests, it could fall below the 100-day SMA and possibly reach the $63,316 mark.
A closer examination of BTC’s movement on the 1-day chart shows that the inability to break above the 1-day trendline has led to significant price appreciation. drop towards the 100-day SMA and the $63,316 support level. This led to Bitcoin successfully printing a bearish candlestick during the previous day’s trading.
Additionally, the 1-Day Composite Trend Oscillator indicates a potential bearish decline as the signal line is currently trying to cross below the indicator’s SMA. If this crossover is successful, it could lead to further losses for the crypto asset.
Recovery or further decline for Bitcoin?
Must the digital assets price drop below the 100-day SMA and the $63,316 mark, the price may continue falling to test the $60,152 support level. If this level is breached, BTC could experience more price declines towards the $53,541 support range and possibly other levels below.
However, given that Bitcoin fails to decline further as predicted and moves upwards, it will start moving towards the resistance level at $71,909. It could go even higher to challenge the USD 73,811 resistance point if it were to break above USD 71,909 and possibly move further to reach a new all high.
Featured image from iStock, chart from Tradingview.com