Bitcoin (BTC), the market’s leading cryptocurrency, is facing renewed bearish pressure as its price falls below its 1-day Simple Moving Average (SMA). This technical indicator, widely used by traders to gauge market trends, indicates a possible continuation of BTC’s decline.
As Bitcoin aims for a new low, a breach of the 1-day SMA underscores the rise of bearish sentiment and rising volatility in the market. Investors and analysts are closely monitoring this development, as it could indicate a further decline and set the stage for Bitcoin to test lower support levels.
With a market capitalization of over $1.3 trillion and a trading volume of over $25 billion as of the time of writing, the price of Bitcoin is currently down 1.49%, trading at around $66,133 in the last 24 hours. BTC market cap and trading volume are currently down 1.52% and 4.84% respectively.
Bitcoin Market Sentiment Turns Bearish
On the 4-hour chart, BTC price looks bearish as it is currently trading below the 100-day simple moving average. It can also be seen here that Bitcoin is attempting another move towards $64,515 level of support.
The composite trend oscillator on the 4-hour chart is again showing a bearish sign as both the signal line and the SMA of the indicator are currently trending in an oversold area. As it stands now, those two will stay there for a while thus sending the price bearish.
A careful look at the BTC price movement on the 1-day chart shows that there is always a successful price break below the 100-day SMA. Currently, the crypto asset seems to be trying to pull back for a short period of time before stopping further.
In addition, the formation of the 1-Day Composite Trend Oscillator indicates a bearish fall ahead as both the signal line and the SMA of the indicator after crossing down to the zero line and may fall below this point.
Key Support Levels to Watch
Currently, there are four key support levels at $64,515, $60,158, $56,523, and $50,604 to watch in that order. If the price of Bitcoin continues bearish as predicted, it will start to fall towards the support level of $64,515. If the break is below this level, BTC it will further decline to test the $60,158 level and other support levels.
However, given that the digital asset fails to drop further as predicted and decides to start going higher, it will start to go to the resistance level of $71,909. It may move higher to challenge the $73,811 resistance level if it breaks above the aforementioned level and possibly further to create a new high.
Featured image from iStock, chart from Tradingview.com
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