After a decline, the price of bitcoin has continued its downward movement. The coin, after failing to break above the 100-day simple moving average (SMA) and trend line, saw a decline of over 6% from its previous high.
Will btc price continue to move down or will it reverse and start moving up?
At the time of writing, btc price was trading around $62,972, which is about 28% off its all-time high and was down 1.27% in the last 24 hours. Although the price is trading below the 100 SMA on the 4-hour chart, on the daily chart it is still trading above the 100 SMA.
Current status of the indicators and what they suggest
Looking at the chart, technically a support level and resistance level of $59,653 and $67,255 respectively were formed. However, there could be more support and resistance levels created if the price continues to move down.
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4-hour moving average: A technical observation of the chart of the 4-hour period as seen in the image below reveals that the price is trending below the 100-day moving average. This suggests that the price is in a downtrend and could potentially drop further.
4-Hour RSI Indicator – The Relative Strength Index (RSI) indicator here suggests a downtrend as the RSI signal has crossed and is trending below the 50% line as seen in the chart above.
<img loading="lazy" decoding="async" class="size-medium wp-image-605410 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/04/1714226850_738_Bitcoin-falls-below-4-hour-MA.png" alt="bitcoin” width=”460″ height=”211″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-27_10-13-04.png?w=2753 2753w, https://technicalterrence.com/wp-content/uploads/2024/04/1714226850_738_Bitcoin-falls-below-4-hour-MA.png 460w, https://www.newsbtc.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-27_10-13-04.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-27_10-13-04.png?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-27_10-13-04.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-27_10-13-04.png?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-27_10-13-04.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/04/BTCUSDT_2024-04-27_10-13-04.png?w=1140 1140w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
The MACD indicator The 4-hour chart also suggests that the price could continue to move lower as the MACD histograms are trending below the zero line. Both the MACD line and the signal line have crossed and are trending below the MACD zero line, indicating a bearish trend, as seen in the image above.
Possible result
With the setup of the above indicators, it can be suggested that the price of bitcoin is still bearish and there are chances that it could still go lower.
If bitcoin continues to decline and breaks below the $59,653 support level, it could witness a deep correction to create a new support level. However, if the price fails to break above this support level, it could start an upward corrective move towards its previous level of $67,255 and if it manages to break above this level, the price will begin an uptrend.
Featured image from iStock, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
