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 possible continuation of btc's downward trajectory.
As bitcoin aims for new lows, the break of the 1-day SMA underlines a growing bearish sentiment and increased volatility in the market. Investors and analysts are closely monitoring this development as it may signal further declines and set the stage for bitcoin to test lower support levels.
With a market capitalization of over $1.3 trillion and trading volume of over $25 billion at the time of writing, the price of bitcoin is currently down 1.49%, trading at around of $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. It can also be seen here that bitcoin is attempting a new move towards $64,515. support level.
The compound trend oscillator on the 4-hour chart also indicates a bearish signal as both the signal line and the SMA of the indicator are currently trending in the oversold zone. As it stands now, those two will stay there for a while, making 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 appears to be attempting a short-term pullback before falling further.
Furthermore, the formation of the 1-day composite trend oscillator indicates a bearish decline in the future, as both the signal line and the SMA of the indicator, after crossing, descend towards the zero line and could fall below this point. .
Key Support Levels to Consider
Currently, there are four key support levels: $64,515, $60,158, $56,523, and $50,604 to watch, respectively. If bitcoin price continues bearish as predicted, it will begin to decline towards the $64,515 support level. In case of a break below this level, btc It will fall further to test the $60,158 level and possibly other support levels.
However, since the digital asset does not fall further as predicted and decides to initiate an upward move, it will begin to move towards the resistance level of $71,909. It could rise further to challenge the resistance level of $73,811 if it breaks the aforementioned level and possibly advance to create a new high.
Featured image from iStock, chart from Tradingview.com
