Bitcoin is currently facing a significant decline in its price, with the value approaching the crucial $60,000 mark. The market sentiment has turned increasingly bearish due to a combination of macroeconomic factors and a surge in selling pressure. This shift has led to Bitcoin struggling to maintain higher levels, causing anxiety among investors and traders.
Taking a closer look at Bitcoin’s price action, technical indicators show a bearish trend in both the 4-hour and 1-day timeframes. The cryptocurrency’s market capitalization is over $1.2 trillion, with a trading volume of over $17 billion. Despite a 3.09% decrease in market capitalization, there has been a significant 96.46% increase in trading volume over the last day.
On the 4-hour chart, Bitcoin’s price is actively bearish, dropping below the $64,515 support level and heading towards the $60,158 support level. The Relative Strength Index (RSI) for the 4-hour timeframe confirms this downward trend, with the signal line sharply dropping below 50% and approaching the oversold section. This suggests a potential for further price decline.
The 1-day chart also shows a bearish trend as Bitcoin is trading below the 100-day Simple Moving Average (SMA) and moving towards the $60,158 support level with strong bearish momentum. The 1-day RSI indicates a threat of extending the decline, with the signal line trending close to the oversold zone. If Bitcoin reaches the $60,158 support level, two possible scenarios may unfold.
If there is a rejection at the $60,158 support level, Bitcoin could start moving upward towards the $64,515 resistance level. Breaking above this level may lead to further price growth towards the $71,909 resistance level and beyond. However, if the price breaks below the support level, Bitcoin may continue to fall, testing the $56,524 support level. A further decline could push Bitcoin to test the $50,604 support level and potentially lower levels.
The current state of Bitcoin points towards a bearish trend, with the price facing significant resistance at the $60,000 mark. Technical indicators suggest a potential for further decline, with investors and traders closely monitoring the situation. The upcoming price movements at critical support and resistance levels will determine the future trajectory of Bitcoin’s price.
