bitcoin (btc), the leading cryptocurrency by market cap, appears headed for further declines as market sentiment becomes increasingly bearish. Recent analysis shows that btc is struggling to maintain key support levels and the general mood among traders and investors is becoming cautious. Several factors, such as macroeconomic pressures, regulatory concerns, and technical indicators, contribute to this negative outlook.
As bitcoin continues to face selling pressure, the potential for additional declines becomes more pronounced. This article explores the short-term bitcoin price action for market participants looking to navigate the current volatility and make informed decisions about their btc holdings.
Currently, btc price is down -2.50%, trading at around $67,796, with a market capitalization of over $1.3 trillion and trading volume of over $29 billion at the time of writing. . Although its market capitalization dropped by 2.44%, its trading volume increased by 94.43% in the last day.
Technical Analysis Points to Further Drop in bitcoin Price
btc on the 4-hour time frame has fallen below the 100-day simple moving average (SMA) with strong momentum by dropping two bearish candles. With such momentum, the btc price may drop further.
<img class="size-medium wp-image-615118 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/Bitcoin-Set-for-Further-Drop-as-Bearish-Sentiment-Intensifies.jpeg" alt="bitcoin” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-11-at-10.19.19-AM-1.jpeg?w=1438 1438w, https://technicalterrence.com/wp-content/uploads/2024/06/Bitcoin-Set-for-Further-Drop-as-Bearish-Sentiment-Intensifies.jpeg 460w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-11-at-10.19.19-AM-1.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-11-at-10.19.19-AM-1.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-11-at-10.19.19-AM-1.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-11-at-10.19.19-AM-1.jpeg?w=1140 1140w” />
The 4-hour RSI also saw a big drop below 50%, trending close to the oversold zone. This confirms that btc may still witness further price declines.
On the daily chart, btc price with strong momentum is falling significantly towards the 100-day SMA with a huge bearish candle. Based on the previous price action, it can be suggested that btc may remain bearish for the rest of the day.
<img class="size-medium wp-image-615119 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/1718111331_304_Bitcoin-Set-for-Further-Drop-as-Bearish-Sentiment-Intensifies.jpeg" alt="bitcoin” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-11-at-10.19.19-AM.jpeg?w=1438 1438w, https://technicalterrence.com/wp-content/uploads/2024/06/1718111331_304_Bitcoin-Set-for-Further-Drop-as-Bearish-Sentiment-Intensifies.jpeg 460w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-11-at-10.19.19-AM.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-11-at-10.19.19-AM.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-11-at-10.19.19-AM.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/06/WhatsApp-Image-2024-06-11-at-10.19.19-AM.jpeg?w=1140 1140w” />
Finally, the 1-day Relative Strength Index (RSI) also suggests that bitcoin price is likely to drop further as the RSI line has fallen slightly below 50% and could trend there for a while.
More losses for btc?
Based on price analysis and what the RSI indicator suggests, if bitcoin continues to fall, it will move towards the support level of $66,736. If it breaks this level, it will fall further to test the $64,515 support level. There is a possibility that it could even fall further to test $60,158 if the aforementioned level fails to sustain the price.
However, suppose btc decides to reverse course at any of the support levels suggested above, it will begin to ascend towards the $71,909 resistance level. If the price breaks this resistance level, it may move to test the $73,811 level and possibly advance further to create a new all-time high.
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