Technical Analysis of Bitcoin Price Movement

Technical Analysis of Bitcoin Price Movement

Bitcoin’s price has recently experienced a pullback, leading to a downward movement. The coin failed to break above the 100-day Simple Moving Average (SMA) and the trend line, resulting in a drop of over 6% from its previous high. The price of BTC is currently trading around $62,972, which is 28% down from its all-time high.

On the daily chart, Bitcoin is still trading above the 100 SMA, while on the 4-hour chart, it is trading below the 100 SMA. A support level of $59,653 and a resistance level of $67,255 have been formed. However, more support and resistance levels could be created if the price continues to move downward.

Analyzing the 4-hour timeframe chart, the price is trending below the 100-day moving average, indicating a potential further downward movement. The Relative Strength Index (RSI) indicator on the 4-hour chart suggests a downward trend, as the RSI signal has crossed below the 50% line. The MACD indicator also indicates a bearish trend, as the MACD histograms are trending below the zero line.

Based on the technical indicators, it can be inferred that the price of Bitcoin is currently bearish, with a possibility of further downward movement. If Bitcoin breaks below the support level of $59,653, it could experience a deep correction. Conversely, if the price fails to break below this support level, it could initiate an upward correction towards the previous level of $67,255. Breaking above this level would signify the beginning of an uptrend.

It is important to note that the information provided in this article is for educational purposes only. NewsBTC does not provide investment advice, and all investments carry inherent risks. It is recommended to conduct thorough research and analysis before making any investment decisions. Use the information at your own risk.

The technical analysis of Bitcoin’s price movement suggests a bearish outlook with the possibility of further downward movement. Traders and investors are advised to monitor key support and resistance levels closely to make informed decisions.

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