Bitcoin recently faced a significant rejection at the $62,498 resistance level, highlighting the prevailing bearish dominance in the market. This failure to break through a critical threshold has led to concerns about potential downward trends. As of the time of writing, the market capitalization of Bitcoin is over $1.2 trillion, with a trading volume of over $27 billion. The cryptocurrency price is currently up by 1.2%, trading at roughly $61,582. Despite a 31.26% increase in market capitalization, there has been a 35.43% decrease in trading volume over the last day.
Bitcoin’s price on the 4-hour chart is still actively bearish and trading below the 100-day Simple Moving Average (SMA). The rejection at $62,498 is a crucial level that signals caution among traders and investors. The 4-hour William Alligator indicates that the price of BTC may extend its bearish trend as there is no successful cross of both the alligator lip and tooth above the alligator jaw. On the 1-day chart, Bitcoin’s price is making a significant drop after being rejected for the second time at the $62,498 level. The 1-day William alligator also indicates more bearishness for BTC, suggesting a downward trend.
An analysis of potential future scenarios for Bitcoin’s price movement following the rejection reveals that if Bitcoin continues to move downward and break below the $60,152 support level, it may move lower to test the $58,523 support level and probably other lower levels if the price breaches this level. However, if there is a rejection at the $60,152 support level, Bitcoin may start moving upward toward the $64,515 resistance level. If this level is breached, the crypto asset may experience more price growth toward the $71,909 resistance level and possibly other levels above.
Overall, the analysis points towards a bearish outlook for Bitcoin in the near term. The rejection at the $62,498 resistance level, coupled with the technical indicators on both the 4-hour and 1-day charts, suggests that the bears are currently dominating the market. Traders and investors should exercise caution and closely monitor price movements to adapt their strategies accordingly in response to the prevailing bearish sentiment in the market.
