Bitcoin, the precocious progeny of the cryptocurrency world, is currently weathering a significant decline. Its value is dipping closer and closer to the all-important benchmark of $60,000. Influenced by a confluence of macroeconomic elements and a fresh wave of selling pressure, the market climate has taken on a distinctly bearish hue.
A palpable struggle to uphold high price echelons characterizes Bitcoin’s prevailing currency movement. The shift in market dynamics, as bearish tendencies take the helm, enhances the relevance of the $60,000 threshold daily. Crypto enthusiasts, market mavens, and investors alike are awaiting with bated breath to observe if Bitcoin can muster the support it needs to halt its sliding trend.
Guided by a panoply of technical pointers, this analysis brings into focus Bitcoin’s ongoing price behavior, probing its implications for the digital asset’s long-term trajectory. A dual-focus time frame going through the paces of the 4-hour and 1-day charts is used.
As we delve into the issue, the total market value of Bitcoin, at this moment, comfortably exceeds $1.2 trillion. A formidable trading volume of above $17 billion only adds to the intrigue. The cryptocurrency is currently down by 3.11%, translating to an approximate trading value of $62,334. Despite a 3.09% dip in overall market value, there’s been an impressive 96.46% surge in trading volume in the last 24 hours.
Dissecting the current state of affairs uncovers that Bitcoin is decidedly bearish. The 4-hour chart is replete with signs suggesting a sizeable drop below the critical $64,515 support level. In fact, the price is moving steadily towards the $60,158 safety threshold.
Adding credence to this prediction is the 4-hour Relative Strength Index (RSI). The indicator’s signal line has nosedived below 50%, and is lingering in the oversold territory, heralding, potentially, a further drop in the bitcoin price.
On the 1-day chart too, Bitcoin maintains its bearish pose. Currently, it is trading under the 100-day Simple Moving Average (SMA), heading towards the $60,158 support level with unabated downward momentum.
The key bulwark, presently, on the radar of Bitcoin enthusiasts is the $60,158 support level. If the price descends to this level, there are two possible outcomes. It could either reverse direction and start climbing or break through this shield and continue its descent.
Assuming a refusal at the $60,158 threshold materializes, Bitcoin may find the wherewithal to ascend towards the much loftier resistance level of $64,515. In the event of breaching this level, Bitcoin may welcome a spate of price escalations, possibly even till the $71,909 resistance level.
On the flip side, if Bitcoin’s price pierces through this safety level, it could potentially fall further to test the $56,524 support zone. If this level too is breached, we could witness an even steeper fall in Bitcoin’s value, possibly extending up to $50,604, and maybe even lower. As of now, Bitcoin trades at $61,186 on the 1D chart.
