Bitcoin (BTC) is currently experiencing increasing bearish pressure, with technical indicators suggesting a potential decline towards the $63,316 level. This price decline is being driven by factors such as fading momentum and decreasing trading volume.
As Bitcoin goals $63,316 level, investors and analysts are closely monitoring this development as it could indicate further declines and set the stage for BTC to test lower support levels. This article examines Bitcoin’s current price movements and Technical indicators signaling a potential further decline for the cryptocurrency, focusing on the 4-hour and 1-day chart.
Bitcoin currently has a market capitalization of over $1.3 trillion and a trading volume of over $39 billion. At the time of writing, its price is down 3.81%, trading around $66,814 in the last 24 hours. During this period, the asset’s market capitalization has fallen by 3.84%, while its trading volume has increased by 70.25%.
Technical Analysis: Key Bearish Indicators
On the 4-hour chart, BTC price looks bearish as it is currently falling towards the 100-day straightforward moving average (SMA). You can also see that Bitcoin price has printed multiple bearish candles, approaching $63,316 support level.
The Composite Trend Oscillator on the 4-hour chart further indicates a downtrend as both signal lines have fallen below the indicator’s SMA and are heading towards the zero level. If the price continues to fall as the indicator suggests, it could fall below the 100-day SMA, potentially reaching $63,316.
A closer look at BTC’s movement on the 1-day chart shows that the failure to break the 1-day trendline led to a significant price raise drop towards the 100-day SMA and the $63,316 support level. This resulted in Bitcoin successfully printing a bearish candle on the previous trading day.
Additionally, the 1-Day composite trend oscillator is indicating a potential bearish downtrend as the signal line is currently trying to cross above the indicator’s SMA. If this crossover is successful, it could lead to further losses for the crypto asset.
Bitcoin Recovery or Further Decline?
Should digital assets be price drop below the 100-day SMA and $63,316 level, it could continue falling to test the $60,152 support level. Once this level is broken, BTC could experience further price declines towards the $53,541 support range and possibly other levels below it.
However, given that Bitcoin does not fall further as expected and starts to rise, it will start heading towards the resistance at $71,909. It could rise even higher to challenge the resistance at $73,811 if it breaks above $71,909 and possibly proceeds further to form modern all high.
Featured image from iStock, chart from Tradingview.com
