Bitcoin recently faced a significant rejection at the $62,498 resistance level, signaling a prevailing bearish dominance in the market. This failure to break through a critical threshold has raised concerns about potential downward trends and highlights the strength of selling pressure among traders and investors. As of the time of writing, the market capitalization of Bitcoin is over $1.2 trillion, with a trading volume of over $27 billion. The cryptocurrency price is currently up by 1.2%, trading at roughly $61,582.
Technical Analysis
Despite a 31.26% increase in market capitalization, there has been a 35.43% decrease in trading volume over the last day. BTC price on the 4-hour chart is still actively bearish and trading below the 100-day Simple Moving Average (SMA). Currently, Bitcoin is attempting a downward move after a rejection at $62,498, as indicated by a blue line on the chart. The formation of the 4-hour William Alligator signals that the price of BTC may extend its bearish trend, with no successful cross of both the alligator lip and tooth above the alligator jaw.
Potential Price Scenarios
On the 1-day chart, it can be observed that Bitcoin’s price is making a significant drop after being rejected for the second time at the $62,498 level, signaling further bearishness. The 1-day William alligator also indicates more bearishness for BTC, with a successful cross of the alligator lip and teeth below the alligator jaw. The price action and indicators on both the 4-hour and 1-day chart suggest that bears are currently dominating the market.
An analysis of potential future scenarios for BTC’s price movement following the rejection reveals that if Bitcoin continues to move downward and break below the $60,152 support level, it may move lower to test the $58,523 support level, with the possibility of testing even lower levels if the price breaches this level. However, if there is a rejection at the $60,152 support level, Bitcoin may start moving upward toward the $64,515 resistance level. If this level is breached, the crypto asset may experience more price growth toward the $71,909 resistance level and possibly other levels above.
The bearish trend in Bitcoin is currently dominating the market, with significant rejection at key resistance levels prompting caution among traders and investors. The technical analysis suggests that Bitcoin’s price is likely to continue its downward trajectory, with potential support levels to watch for in the near future. Traders and investors should closely monitor the price action and indicators to make informed decisions regarding their market strategies in light of the prevailing bearish sentiment.
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