Bitcoin (BTC) is currently facing increased bearish pressure, with technical indicators pointing to a potential drop towards the $63,316 mark. Factors such as weakening momentum and decreasing trading volume are contributing to this price decline. Investors and analysts are closely watching this development as it may lead to further declines and test lower support levels for BTC.
With a market capitalization exceeding $1.3 trillion and a trading volume surpassing $39 billion, Bitcoin’s price was down by 3.81% at the time of writing, trading around $66,814 over the last 24 hours. During this period, the asset’s market cap has decreased by 3.84%, while its trading volume has surged by 70.25%. This article analyzes Bitcoin’s current price movements and technical indicators signaling a potential further decline for the cryptocurrency, focusing on the 4-hour and 1-day charts.
On the 4-hour chart, BTC appears bearish as it approaches the 100-day Simple Moving Average (SMA) and the $63,316 support level. Multiple bearish candlesticks are being printed as the price drops, indicating a potential downward trend. The Composite Trend Oscillator on the 4-hour chart further confirms the bearish trend, with both signal lines moving below the indicator’s SMA towards the zero level. If the price continues to decline as suggested, it could drop below the 100-day SMA and reach the $63,316 mark.
A closer look at Bitcoin’s movement on the 1-day chart reveals a failure to break above the 1-day trendline, leading to a significant price drop towards the 100-day SMA and the $63,316 support level. This has resulted in the digital asset printing a bearish candlestick in the previous day’s trading session. The 1-Day composite trend oscillator also indicates a potential bearish decline, with the signal line attempting to cross below the indicator’s SMA. If this crossover occurs, it may lead to further losses for BTC.
Should Bitcoin’s price fall below the 100-day SMA and the $63,316 mark, it could continue dropping to test the $60,152 support level. Further price drops may occur towards the $53,541 support range and potentially lower levels. However, if Bitcoin does not decline as predicted and starts moving upward, it may target the $71,909 resistance level and potentially break above it to challenge the $73,811 resistance point, possibly setting a new all-time high. Investors and traders are advised to closely monitor Bitcoin’s price movements and technical indicators to make informed decisions about their investments.
