Bitcoin (BTC), the leading cryptocurrency by market capitalization, is facing renewed bearish pressure as its price falls below the 1-day simple moving average (SMA). This technical indicator, widely used by traders to gauge market trends, signals a potential continuation of BTC’s downward trajectory.
As Bitcoin targets new lows, the breakout of the 1-day SMA highlights growing bearish sentiment and increased volatility in the market. Investors and analysts are closely watching this development as it could indicate further declines 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 at the time of writing, Bitcoin price is currently down 1.49%. trading at around $66,133 in the last 24 hours. BTC market capitalization and trading volume are currently down 1.52% and 4.84%, respectively.
Bitcoin Market Sentiment Turns Bearish
On the 4-hour chart, BTC price appears bearish as it is currently trading below the 100-day simple moving average. We can also observe here that Bitcoin is trying to progress further towards $64,515. support level.
The Composite Trend Oscillator on the 4-hour chart is also signaling a bearish sign as the signal line and SMA of the indicator are currently moving in the oversold zone. As it stands, these two will be there for a while, sending the price back down.
A close look at the BTC price action on the 1-day chart shows that there is still a successful price breakout below the 100-day SMA. Currently, the crypto asset appears to be attempting a short-term retracement before falling further.
Additionally, the formation of the 1-day Composite Trend Oscillator signals a bearish fall, as the signal line and SMA of the indicator after crossing are moving down towards the zero line and could fall below this point .
Key Support Levels to Watch
Currently, there are four key support levels to watch respectively: $64,515, $60,158, $56,523, and $50,604. If Bitcoin price continues to decline as expected, it will begin to decline towards the $64,515 support level. In the event of a break below this level, BTC will decline further to test the $60,158 level and possibly other support levels.
However, since the digital asset does not continue to fall as expected and decides to start an uptrend, it will start moving towards the resistance level of $71,909. It could go even higher to challenge the $73,811 resistance level if it breaks above the aforementioned level and possibly create a new high.
Featured image from iStock, chart from Tradingview.com
