Bitcoin’s price has been on a downward trend, hovering around $63,950 per unit on June 21, 2024. Despite possible entry points, the market is seeing strong selling pressure across all time frames, with technical indicators signaling caution for traders amidst bearish trends dominating the charts.
In the short term, the 1-hour chart shows a continuous downtrend for bitcoin, with lower highs and lows consistently hitting around $63,501. Trading volume remains low, indicating weak momentum. Traders may look to enter between $63,000 to $63,500 if there is a reversal with increased volume, targeting an exit near the resistance level of $67,000 or higher.
Looking at the 4-hour chart, bitcoin’s price has sharply dropped from $67,260 to $63,501, reflecting a significant downtrend. Heavy selling pressure is evident from spikes in red volume bars. Traders could consider entering around the $63,000 support level if there is a bullish reversal confirmed by higher buying volume, aiming for an exit near the previous resistance level of $67,260.
Analyzing the daily chart, bitcoin has been on a clear downtrend, moving from a high of $71,958 on May 20 to a low of $63,501 currently. Long-term traders may find an entry point if the price stabilizes around $63,000 and shows a strong reversal pattern, like a bullish engulfing candle with increased volume. An exit near the $67,000 to $68,000 levels is advised based on historical price action indicating resistance.
Various oscillators and moving averages suggest mixed signals, with conflicting indicators highlighting the need for careful analysis before making trading decisions. While MAs predominantly signal bearish sentiment, the 200-period EMA and SMA offer potential support and a chance for reversal at longer time frames.
Despite the prevailing downtrend, there is a possibility of a bullish reversal if bitcoin’s price stabilizes around $63,500. Key indicators like the 200-period EMA and SMA point towards positive sentiment, suggesting long-term support may hold. Traders should monitor these levels closely for potential gains if reversal patterns emerge with higher trading volumes.
On the other hand, the bearish trend remains dominant across all time frames, indicating lower highs and significant selling pressure. Oscillators and MAs predominantly signal bearish trends, highlighting continued downside risk. Without clear reversal patterns and increased volume to support a bullish scenario, caution is advised as bitcoin’s price could see further declines.
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