On Friday, the price of Bitcoin experienced a decline, which saw the price rise from $71,310 to $65,370. The price is currently in the process of retracing and there is a possibility that it will continue to fall. At this point, it could be that the BTC price is running out of steam and heading into a downtrend.
At the time of writing, BTC price was up 0.9%, trading around $67,734 below the 4-hour price. 100-day moving average in the last 24 hours. However, on the daily time frame, the price is still trading above the 100-day moving average.
Bitcoin on the 4-hour chart
Looking at the 4-hour chart, Bitcoin is already trading below the 100-day moving average and is trying to move below the trendline. The price could start a new downtrend if it manages to break below the trendline.
Moreover, with the help of the MACD indicator, the MACD histogram is moving below the MACD zero line. The MACD line and the signal line attempt to move below the MACD zero line. This formation of the MACD indication simply suggests that the price could move lower.
Using the Relative Strength Index (RSI) to also analyze price action on a 4-hour time frame, the RSI line is already moving in the oversold section below the 50% level, suggesting a bearish a trend could be on the horizon.
BTC on the daily chart
Although the price is still trading above the 100-day moving average on the daily time frame, the MACD histogram is already moving below the MACD zero line. Furthermore, the MACD line and Signal are heading towards the zero MACD line, which could be a strong indication that prices may decline.
Looking at the chart with the RSI indicator, the RSI line is moving slightly below the 50% level, indicating that the price could move lower and potentially start a downtrend.
Bitcoin could begin a downward correction movement if the price suffers a decline after this retracement. Additionally, if this downward correction begins, it could move closer to its previous low of $64,625.81, and a breakout from this level would trigger a downtrend.
On the contrary, if Bitcoin price fails to surpass its previous low, it could continue its upward trend towards its previous high of $73,010, and if the price manages to surpass this level, it could go even higher away to create a new peak.
Featured image from iStock, chart from Tradingview.com
