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Bitcoin is currently witnessing Noticeable decline, with its price steadily approaching the crucial $60,000 mark. Market sentiment has turned increasingly bearish, driven by a combination of macroeconomic factors and a recent rise in selling pressures.
This shift has led to Bitcoin struggling to maintain higher levels, raising concern among investors and traders. While the bears are in control, The $60,000 threshold becomes a focal pointas many are watching closely to see if cryptocurrency assets can find support or continue their downtrend.
With the help of technical indicators, this analysis focuses on analyzing the current price action of Bitcoin and its impact on the future of the asset focusing on the 4-hour and 1-day time frame.
As of this writing, Bitcoin’s market capitalization is more than $1.2 trillion, with trading volume exceeding $17 billion. The price of the cryptocurrency is now down 3.11%, trading at approximately $62,334. Although the market capitalization decreased by 3.09%, there was a 96.46% increase in trading volume over the last day.
Overview of the current Bitcoin market
Currently, as can be seen on the 4-hour chart, Bitcoin price is actively bearish and has dropped significantly below the support level of $64,515. It can also be observed here that the price is falling towards the $60,158 support level.
The above-mentioned claim is also confirmed by the Relative Strength Index (RSI) on the 4-hours frame, where the indicator’s signal line has fallen sharply below 50% and is currently trending at the oversold zone. This indicates that there is a chance for further decline in prices.
Bitcoin price The 1-day chart is also actively bearish as it is currently trading below the 100-day simple moving average (SMA) falling towards the $60,158 support level with strong downside momentum.
Finally, with the formation of the 1-day RSI, it can be noted that Bitcoin price poses a greater threat to extend its decline as the signal line of the indicator that fell below 50% is actively trending near the oversold zone.
Key Support Levels: Why $60,158 Matters
Currently, Bitcoin is falling towards the $60,158 support level. Two possible events could happen if the price reaches this level, it will either face rejection and start moving up or it will break this level and continue moving down.
Therefore, if there is a rejection at the support level of $60,158, Bitcoin may start moving upwards towards the resistance level of $64,515. If this level is breached, the crypto assets may see further price growth towards the $71,909 resistance level and possibly other higher levels.
On the other hand, if BTC price falls below this support level, it will continue to fall to test the support level of $56,524. If this level is broken, Bitcoin may do so drop Moreover, the support level of $50,604 has been tested and possibly lower levels.
Featured image from iStock, chart from Tradingview.com
