On Monday, the price of bitcoin hit resistance at the daily level of $63,956, which led to a 9.2% decrease over the following three days. It had dropped below the weekly support level of $58,375 by Thursday's close. As of Friday, it was trading at roughly $55,314, which is a 2.8% decline from the previous day's closing price.
Bitcoin's price may drop 7.3% to retest its daily support level of $52,266 if it closes below its low of $56,522. This bearish thesis is supported by the Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart, both of which are below their respective neutral thresholds of 50 and zero. This implies that bearish momentum will likely persist, which might cause the price of bitcoin to drop even more.
On the other hand, it would suggest that bullish sentiment is still prevalent if BTC closes above the $63,956 daily resistance level and makes a higher high in the daily time frame. A 5% increase in the price of Bitcoin could result from this development, taking it back to its next weekly resistance level of $67,147.