bitcoin recently faced a significant rejection at $62,498 resistance level, which underlines the prevailing bearish dominance in the market. This failure to exceed a critical threshold highlights the strength of the selling pressure and raises concerns about possible downward trends.
Rejection at this key level indicates caution among traders and investors, leading to a re-evaluation of market strategies. As bearish momentum persists, this analysis explores the possible outcomes of bitcoin's price movement and the broader implications for the cryptocurrency market.
At the time of writing, bitcoin's market capitalization exceeds $1.2 trillion, with a trading volume of over $27 billion. The price of the cryptocurrency is currently up 1.2%, trading at approximately $61,582. Despite a 31.26% increase in market capitalization, there has been a 35.43% decrease in trading volume over the past day.
Technical indicators: signs of continued bearish pressure
btc price on the 4-hour chart it remains actively bearish and is trading below the 100-day SMA. bitcoin is currently attempting a move lower after a rejection at $62,498, which is represented by a blue line on the chart.
The 4-hour William alligator formation indicates that btc price may extend its downtrend as there is no successful crossover of the alligator lip and tooth above the alligator jaw.
On the 1-day chart, it can be seen that bitcoin price is suffering a big drop after being rejected for the second time at the $62,498 level, indicating further bearishness even as it continues to trade below the SMA of 100 days.
Furthermore, the 1-day William Alligator also indicates more bearishness for btc. After a successful crossing of the crocodile's lip and the teeth under the crocodile's jaw, they have remained well separated from each other.
It should be noted that the price of the crypto asset, from a general point of view, is actively bearish. Given the price action formation and indicators on both the 4-hour and 1-day chart, it can be seen that the Bears They currently dominate the market.
Potential Scenarios: What's Next for bitcoin?
An analysis of possible future scenarios for btc price movement after rejection reveals that if bitcoin continues to move down and breaks below the $60,152 support level, it may move down to test the $58,523 support level and probably pass to test other lower levels if the price exceeds this level.
However, if there is a rejection at the $60,152 support level, bitcoin may start moving up towards the $64,515 resistance level. If this level is broken, the crypto asset may see further price growth towards the resistance level of $71,909 and possibly other higher levels.
Featured image from iStock, chart from Tradingview.com
