Now trading close to $63,000 Bitcoin is getting close to a critical level that could indicate a lower high in the current declining trend. If Bitcoin fails to break through key resistance, the formation of this lower high is frequently interpreted as an early warning sign of a possible price reversal, indicating that a significant decline may be imminent.
Though there has been a recent rally, the trend is still exhibiting signs of weakness. Bitcoin is encountering multiple technical obstacles, with the $64,000 mark serving as a crucial boundary. The bearish pattern may be disproved, and further upside may be possible if Bitcoin is able to break above $64,000.
BTC/USDT Chart by TradingView
The death cross that appeared on Bitcoin practically destroys the chances of the first cryptocurrency to achieve a solid upside rally, unfortunately. Generally speaking, this bearish signal is still active and suggests further downside. Bitcoin must break the downward trend by rising above $64,000 and establishing a higher high in order to negate the death cross and the bearish momentum.
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Bitcoin's trading volume has increased, which is encouraging for the currency's short-term momentum from a technical perspective. Still, readings on the RSI (Relative Strength Index) point to the asset possibly approaching overbought territory, raising the possibility of a pullback should buyers be unable to hold onto the asset.
To sum up, we are at a turning point for Bitcoin. Indicating additional downside risk, a failure to break above $64,000 could validate a lower high. Conversely, a breakout above this level might cause a change in market sentiment and give the bulls a chance to get back on track.
