After a recent pullback, Bitcoin has continued its downward movement, failing to break above the 100-day Simple Moving Average (SMA) and the trend line. The price of Bitcoin has dropped over 6% from its previous high, currently trading around $62,972, which is approximately 28% down from its all-time high. In the last 24 hours, Bitcoin was down by 1.27%. While the price is trading below the 100 SMA on the 4-hour chart, it is still trading above the 100 SMA on the daily chart. Support and resistance levels of $59,653 and $67,255 have been formed, but more levels could be established if the price continues to move downward.
Looking at the 4-hour timeframe, the price of Bitcoin is trending below the 100-day moving average, indicating a potential downtrend. The Relative Strength Index (RSI) on the 4-hour chart also suggests a downward trend, as the RSI signal has crossed below the 50% line. Additionally, the MACD indicator shows that the price might continue to move downward, with the MACD histograms trending below the zero line. Both the MACD line and the Signal line are below the MACD zero line, signaling a bearish trend.
Based on the technical indicators, it is likely that the price of Bitcoin will continue to move downward. If Bitcoin breaks below the support level of $59,653, it could experience a deep correction to establish a new support level. However, if the price holds above this level, it could initiate an upward correction towards the $67,255 resistance level. Breaking above this level would signal the start of an uptrend for Bitcoin.
It is important to note that the information provided is for educational purposes only and does not constitute financial advice. Investing in cryptocurrencies carries inherent risks, and it is essential to conduct thorough research before making any investment decisions. NewsBTC does not endorse buying, selling, or holding any investments based on the information provided. Investors should use the information at their own risk.
The future of Bitcoin remains uncertain as it continues its downward movement. Technical indicators suggest a bearish trend, with the potential for further decline if key support levels are broken. Investors should proceed with caution and stay informed about market developments to make informed decisions regarding their investments in Bitcoin.
