Bitcoin’s Rejection At $62,498 Signals Bearish Dominance, Here Are Possible Implications

Bitcoin recently experienced a significant drop at $62,498 resistance level, underlining the current bearish dominance of the market. This failure to cross a key threshold highlights the strength of the selling pressure and raises concerns about a potential bearish trend.

A rejection of this key level indicates caution among traders and investors, which prompts a re-evaluation of market strategies. As bearish momentum persists, this analysis examines the potential consequences of Bitcoin price movements and the broader implications of the cryptocurrency market.

As of the time of writing, Bitcoin’s market capitalization is over $1.2 trillion, with a trading volume of over $27 billion. The price of the cryptocurrency is currently up 1.2%, trading at around $61,582. Despite a 31.26% increase in market capitalization, there was a 35.43% decrease in trading volume on the last day.

Technical Indicators: Signs of Continued Bearish Pressure

BTC price on the 4-hour chart it is still active and trading below the 100-day Simple Moving Average (SMA). Currently, Bitcoin is trying to decline after the rejection at $62,498, represented by the blue line on the chart.

The 4-hour formation William Alligator shows that the price of BTC may increase its bearish trend as there is no successful cross both the lip of the alligator and the tooth above the jaw of the alligator.

On the 1-day chart, it can be observed that the price of Bitcoin made a significant decline after the second rejection at the level of $62,498, thus indicating more bullishness as it continues to trade below the 100-day SMA.

In addition, the 1-day William’s chart also indicates further strength for BTC. After the successful cross of the crocodile’s lips and teeth under the crocodile’s jaw, they kept a good spread of each other.

It should be noted that the price of the crypto asset, from a general point of view, is active bearish. Looking at the price action structure and indicators on both the 4 hour and 1 day chart, it can be seen that bears they currently dominate the market.

Possible Scenarios: What’s Next for Bitcoin?

An analysis of possible future scenarios of BTC price movement following the rejection reveals that if Bitcoin continues to move lower and breaks below the support level of $60,152, it may pull back to test the support level of $58,523 and possibly move forward 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 asset may face further price growth towards the resistance level of $71,909 and other levels above.

Featured image from iStock, chart from Tradingview.com