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Bitcoin recently faced a major rejection at $62,498 Resistance levelWhich confirms the bearish dominance prevailing in the market. This failure to break the critical threshold highlights the strength of the selling pressure and raises concerns about possible downward trends.
Rejection at this key level signals caution among traders and investors, prompting a re-evaluation of market strategies. As bearish momentum continues, this analysis explores the potential outcomes of Bitcoin’s price movement and the broader implications for the cryptocurrency market.
As of the time of writing, Bitcoin has a market capitalization of over $1.2 trillion, with trading volume of over $27 billion. The price of the cryptocurrency is currently up 1.2%, trading at approximately $61,582. Although the market capitalization increased by 31.26%, there was a 35.43% decrease in trading volume over the last day.
Technical indicators: signs of continued downward pressure
Bitcoin price On the 4-hour chart, the pair is still actively bearish and trading below the 100-day simple moving average (SMA). Currently, Bitcoin is trying to move lower after the rejection at $62,498, which is represented by a blue line on the chart.
The William Alligator formation on the 4-hour chart indicates that BTC price may extend its downtrend as there is no successful intersection of both the alligator’s lip and tooth above the alligator’s jaw.
On the 1-day chart, it can be seen that Bitcoin price is recording a significant decline after being rejected for the second time at the $62,498 level, indicating more downside even as it continues to trade below the 100-day simple moving average.
In addition, the 1-day William’s Alligator also indicates further downside for BTC. After the successful intersection of the crocodile’s lip and teeth under the crocodile’s jaw, they maintained a good spacing from each other.
It should be noted that the price of crypto assets, from a general point of view, is actively bearish. Looking at the price action formation and indicators on both the 4-hour chart and on the 1-day chart, we can see that Bears It currently dominates the market.
Possible scenarios: What’s next for Bitcoin?
Analysis of possible future scenarios of BTC price movement after rejection reveals that if Bitcoin continues to move down and breaks below the support level of $60,152, it may move down to test the support level of $58,523 and may move to test other lower levels if the price breaks this level.
However, if there is a rejection at the $60,152 support level, Bitcoin may start moving higher towards the $64,515 resistance level. If this level is breached, the crypto assets may see further price growth towards the $71,909 resistance level and possibly other higher levels.
Featured image from iStock, chart from Tradingview.com
