Bitcoin’s value as of July 3, 2024, is set at $60,177, showcasing a range of $59,712 to $62,974 over a 24-hour period. The trading volume within the past day hit $24.36 billion, and the current market cap stands at $1.18 trillion. A closer examination of various time frames and technical indicators discloses consistent bearish signals, signaling caution for traders. On the contrary, the drop filled a CME gap on the futures chart, hinting at a potential upward surge in the near future.
Bitcoin’s 1-hour chart points out a downward trend from $63,211 to $59,544, indicating strong bearish pressure with an increase in selling volume around the lows. Notable support is identified at $59,544, with resistance near $63,211. Traders are encouraged to contemplate short positions on rebounds near resistance levels and to exit near support levels.
The 4-hour chart unveils a prolonged downtrend from $63,794 to $59,544, with volume spikes supporting bearish movements. Key levels align with the 1-hour chart, establishing support at $59,544 and resistance at $63,794. Sequential downturns interspersed with minor bullish corrections intensify the bearish momentum.
A detailed scrutiny of the daily chart exhibits a substantial downtrend from $71,949 to $58,456, with augmented volume during downward shifts indicating the dominance of sellers. Significant support is situated at $58,456, with resistance marked at $71,949. Extended downturns accompanied by intermittent upswings denote continual downtrend circumstances.
Oscillator readings offer a blend of signals. The relative strength index (RSI) at 36 and the Stochastic at 39 suggest a neutral stance, while the commodity channel index (CCI) at -97 and the average directional index (ADX) at 33 also imply an absence of a clear trend. Conversely, the momentum at -3114 and the moving average convergence divergence (MACD) level at -1549 offer sell signals, aligning with the prevailing bearish sentiment depicted in the charts.
Validation from moving averages (MAs) further affirms the bearish perspective. Both the Exponential Moving Averages (EMAs) and Simple Moving Averages (SMAs) spanning 10, 20, 30, 50, and 100 periods indicate a bearish trajectory, barring the 200-period EMA and SMA suggesting a bullish sentiment. The EMA (10) is positioned at $61,900 and the SMA (10) at $61,324, both below the current price, hinting at further downside possibilities. The EMA (200) at $58,252 and SMA (200) at $58,402 indicate probable long-term support.
Bearish Evaluation:
The preponderance of bearish indicators, encompassing downtrends across multiple time frames, volume spikes during bearish movements, and sell signals from pivotal oscillators and moving averages, advocate for sustained downward pressure on bitcoin’s value. Traders are advised to lean towards short positions and exercise caution until robust bullish signals materialize.
Bullish Analysis:
Despite the prevailing bearish sentiment, the 200-period EMA and SMA signaling a buy and prospective long-term support above $58,000 spark optimism. A decisive bullish reversal beyond $60,000 could unveil opportunities for long positions; however, traders should await firm confirmation before engaging in bullish strategies.
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