Bitcoin’s price movement on June 24, 2024, suggests a clear bearish trend. Bitcoin has been fluctuating between $60,580 and $64,384 over the past 24 hours, currently hovering around $61,171. Despite the decline, Bitcoin’s market cap stands at $1.21 trillion, with a trading volume of $19.12 billion, indicating significant market activity. This decline aligns with recent news from Mt Gox, where the trustee announced that bitcoin payments to creditors will begin in July.
Analyzing Bitcoin’s 1-hour chart, we observe a sharp decline from around $64,490 to an intraday low of $60,580. This decline was accompanied by a notable increase in volume, indicating strong selling pressure. Key support levels were breached, suggesting the possibility of further downside unless a reversal pattern emerges. Traders are advised to look for stabilization or consistent upswings with increasing volume before considering entry points.
On the 4-hour chart, Bitcoin’s price has continued its downward trajectory from approximately $66,455 to $60,580. The increased volume during this decline supports the idea of a more significant bearish movement. Entry points should only be considered once a reversal pattern or strong support around $60,000 is confirmed. To minimize losses, exit strategies should have been enacted at earlier support breaches, such as $64,000 and $62,500 per unit.
Examining the BTC/USD daily chart on Bitstamp, we can observe a prolonged downtrend from a high of $71,949. The sustained high selling volume during recent downturns emphasizes a bearish sentiment. Long-term holders should closely monitor critical support levels around $60,000, considering potential exits if these levels fail, indicating further downside risk.
Oscillators present a mixed picture, with most indicators in a neutral position. The relative strength index (RSI) at 28, Stochastic at 7, and commodity channel index (CCI) at -161 all suggest a neutral stance, while the momentum indicator at -4733 and moving average convergence divergence (MACD) level at -1247 signal bearish sentiment. Caution is advised as momentum indicators point towards continuing negative momentum.
Moving averages (MAs) further support the bearish outlook for Bitcoin. Short to medium-term exponential moving averages (EMAs) and simple moving averages (SMAs) ranging from 10 to 100 periods all indicate a bearish action, with values ranging from $64,423 to $67,311. However, the 200-period EMAs and SMAs present a bullish signal at $57,961 and $57,564, respectively, indicating that long-term support may still hold.
In conclusion, the current market action suggests a bearish trend for Bitcoin. The majority of short to medium-term moving averages and momentum indicators signal continued downside. Traders should exercise caution and consider exiting positions if critical support levels are breached to effectively manage risk. However, the 200-period moving averages indicate that long-term support remains intact, leaving potential for a bullish recovery if strong support around $60,000 is found and signs of reversal are exhibited.
