The price of Bitcoin has taken a hit recently, experiencing a drop of over 6% from its previous high after failing to break above the 100-day Simple Moving Average (SMA) and the trend line. The question on everyone’s mind now is whether the price will continue to move in a downward direction or if it will reverse and start moving upward.
As of the time of writing, Bitcoin was trading around $62,972, down by 1.27% in the last 24 hours and about 28% down from its all-time high. While the price is currently trading below the 100 SMA on the 4-hour chart, it is still above the 100 SMA on the daily chart.
Looking at the technical indicators, the 4-hour Moving Average suggests a downtrend, with the price trending below the 100-day moving average. The Relative Strength Index (RSI) indicator also indicates a downward trend, as the RSI signal has crossed below the 50% line. Additionally, the MACD indicator on the 4-hour chart shows a bearish trend, with the histograms trending below the zero line.
Based on these indicators, it is suggested that the price of Bitcoin is still bearish and could potentially move further downward. If Bitcoin breaks below the support level of $59,653, it may experience a deep correction to establish a new support level. However, if it fails to break below this level, it could start an upward correctional movement towards the previous level of $67,255, potentially signaling the beginning of an uptrend.
In conclusion, the future direction of Bitcoin’s price remains uncertain, with the possibility of further downward movement or a potential reversal towards an uptrend. Traders and investors are advised to conduct their own research and exercise caution when making investment decisions.
