Bitcoin is currently facing significant bearish pressure, as indicated by multiple indicators across different time frames. The cryptocurrency is currently trading at $62,279, with a 24-hour range between $61,994 and $63,929.
On the daily chart, Bitcoin’s trend is strongly bearish, characterized by lower highs and lower lows. This suggests that sellers have a firm grip on the market. The presence of bearish downturns also indicates a potential slowdown in momentum. However, the declining volume accompanying the price drop leaves some ambiguity regarding a near-term reversal. Traders will be closely watching the support level at approximately $59,629. A breach of this level could lead to further declines. On the other hand, heavy resistance is found around $72,756, which could be critical for entry or exit strategies depending on market confirmation.
The 4-hour chart for BTC/USD confirms the overall bearish momentum observed in the daily analysis. There are no strong bullish upswings, suggesting a lack of buyer control. The current price level, which is around the midpoint of the recent range, offers limited high-confidence trading opportunities. For bearish strategies, potential entries may occur on pullbacks to former support levels, which now act as new resistance, particularly if accompanied by increased selling volume.
Looking at the 1-hour chart via Bitstamp, there is intricate price action and potential intraday trading signals. A consolidation pattern around $61,943 provides a basis for short-term trades. The $63,000 threshold, which has been repeatedly tested as both support and resistance, is crucial for short-term strategy development. A recent spike in trading volume at these levels could indicate imminent price direction confirmation, making it an area of great importance for traders.
In terms of broader sentiment, oscillators and moving averages (MAs) predominantly reflect bearish conditions. The relative strength index (RSI) stands at 41, indicating neutrality but leaning towards bearish territory. Most MAs signal a bearish sentiment, especially in shorter durations such as the 10, 20, 30, and 50 periods, all suggesting downward price action. However, longer-term views from the 100 and 200-period averages show bullish signals, providing a contrarian stance amidst prevailing market sentiment.
The bull verdict acknowledges the current bearish momentum but highlights the long-term support levels indicated by the 100 and 200-period exponential and simple moving averages. If Bitcoin can maintain its position above these foundational supports and if the broader market sentiment shifts positively, there may be potential for a gradual recovery. Traders should watch for signs of increased buying volume and reversal patterns near key support zones as potential indicators of an upward trajectory.
On the other hand, the bear verdict emphasizes the ongoing downward momentum, supported by the majority of technical indicators across various time frames. With consistent sell signals from both moving averages and oscillators in shorter periods and a lack of strong bullish interventions, Bitcoin is likely to continue its descent. The next key support levels may be tested soon, and if broken, could accelerate the bearish trend, prompting traders to consider short positions or defensive strategies.
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