Bitcoin has been facing challenges in breaking above the $72,983 resistance level, resulting in a continuous drop in its price. Despite still trading above the 1-day Simple Moving Average (SMA), the rejection has caused the cryptocurrency to fall from $71,942 to $66,785, moving below the SMA in both the 1-hour and the 4-hour chart. This drop below the SMA signals a potential shift towards a bearish trend.
Price Analysis and Indicators
Currently, the price of Bitcoin is hovering around $67,635, showing a slight increase of 0.14%. With a market capitalization exceeding $1.3 trillion and a 24-hour trading volume surpassing $25 billion, the cryptocurrency market remains volatile. However, both the market capitalization and trading volume have experienced a decline of 1.14% and 6.07% respectively in the last 24 hours.
From a technical perspective, Bitcoin has fallen below the simple moving average on the 4-hour timeframe, indicating a potential downward movement in its price. The 1-hour MACD also suggests a bearish outlook as the MACD histograms trend below the zero line. Moreover, the crossover of the MACD line and signal below the MACD zero line further supports the possibility of a bearish trend.
Future Price Predictions
Analyzing the 1-day chart, it is evident that Bitcoin’s price is approaching the 100-day simple moving average, signaling a potential bearish momentum. The formation of the 1-day MACD histograms below the MACD zero line, along with the crossover of the MACD line and signal heading towards the MACD zero line, indicate a looming bearish trend.
Considering the price formations and MACD signals from both timeframes, Bitcoin could potentially experience a significant drop, initiating a bearish trend. With one major resistance level at $73,203 and two significant support levels at $60,146 and $50,604, the price of Bitcoin may continue to decline towards the $60,146 support level in case of a bearish scenario.
In the event of a break below the $60,146 and $50,604 support levels, Bitcoin could further test lower support levels below $67,635. However, failure to breach any of the mentioned support levels might lead to an upward movement towards the previous resistance level of $73,203. If Bitcoin manages to surpass this resistance level, it could spark a new rally, potentially reaching new all-time highs in the future.
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