New York, NY – Bitcoin, the leading cryptocurrency by market capitalization, is experiencing a downward trend as its price falls below the 1-day Simple Moving Average (SMA). This technical indicator is commonly used by traders to assess market trends and is now pointing towards a potential continuation of Bitcoin’s decline.
Investors and analysts are closely watching as Bitcoin targets new lows, with the breach of the 1-day SMA reflecting increased bearish sentiment and heightened market volatility. The current price of Bitcoin is down by 1.49%, trading at around $66,133 over the last 24 hours, with its market capitalization and trading volume also seeing decreases.
On the 4-hour chart, Bitcoin appears bearish as it trades below the 100-day simple moving average, indicating a move towards the $64,515 support level. The composite trend oscillator on the same chart reinforces this bearish outlook, with both the signal line and SMA trending in the oversold zone, suggesting a further downward price movement.
Looking at the 1-day chart, Bitcoin historically tends to break below the 100-day SMA, and is currently showing signs of a short-term retracement before potentially dropping further. Additionally, the 1-Day Composite Trend Oscillator is signaling a forthcoming bearish trend as both the signal line and SMA are descending towards the zero line.
Key support levels to monitor include $64,515, $60,158, $56,523, and $50,604, with Bitcoin expected to move downwards if it breaks below these levels. However, if the digital asset reverses course and starts moving upwards, it could challenge resistance levels at $71,909 and $73,811, potentially reaching new highs.
Overall, the cryptocurrency market is closely monitoring Bitcoin’s price movements and technical indicators to gauge its future direction. With increased bearish sentiment and potential downside risk, traders and investors are advised to stay vigilant and adapt to changing market conditions.