Bitcoin’s recent performance continues to be volatile, with the latest trading session ending at $64,095 on April 26, 2024. Traders are facing mixed signals across different technical charts and indicators, as the cryptocurrency’s fortunes fluctuate.
Bitcoin’s oscillators are mostly neutral, with the relative strength index (RSI) at 46 and other indicators like the Stochastic and commodity channel index (CCI) hovering around similar levels. This suggests a lack of clear directional momentum. However, moving averages (MAs) present a more pessimistic outlook, indicating bearish sentiment in the short-term periods (10, 20, 30, and 50-day averages), despite some bullish signals from the longer-term MAs (100 and 200-day averages).
When looking at the 1-hour BTC/USD chart, significant volatility is observed without a definitive trend, as the price remains within a tight trading range. Short-term traders may consider entering near the lower range at around $62,000, using this level as a potential support zone. On the other hand, taking profits near the resistance at $66,000 could be wise, as historical price behavior suggests this level has acted as a strong barrier.
Taking a broader view, the 4-hour and daily charts highlight a persistent downtrend. The 4-hour analysis reveals lower highs and lower lows, indicating a bearish trend that has been accentuated by sharp sell-offs. The daily chart confirms this trend, with substantial resistance observed at the $72,000 level, which Bitcoin has struggled to overcome. Long-term traders should exercise caution and wait for a confirmed bullish reversal before making significant investment decisions.
In the bullish scenario, if Bitcoin manages to break above the resistance level at $65,391 and sustain the upward movement, it would signal a significant reversal from the prevailing bearish trend. This breakout could potentially propel Bitcoin into a bullish phase, with a near-term target of $70,000. Traders should closely monitor sustained movements above this key resistance level, as it would suggest increasing momentum and a possible shift in market sentiment towards optimism.
On the other hand, the consistent bearish signals from the majority of MAs, combined with the lack of strength in the oscillators, indicate that the bearish trend may continue in the near term. With resistance levels forming at lower levels than previous highs and evident selling pressure, Bitcoin could potentially test further downsides, potentially reaching the next major bearish target at $60,000. Traders should exercise caution, consider safeguarding their assets, and be prepared for possible further price declines.
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