Bitcoin Price Faces Resistance as Bears Dominate the Market
The recent performance by the #Bitcoin❗️ price on the 4-hour chart has demonstrated signs of weakness, with closing prices gradually decreasing over the last few sessions. The market is currently battling to find solid ground, as indicators suggest an ongoing bearish trend.
From a trend perspective, the 9 and 20 Exponential Moving Averages (EMAs) reflect bearish market sentiment. Both the shorter-term 9 EMA and the longer-term 20 EMA are pointing downward, indicating sustained selling pressure. The gap between these two averages highlights the ongoing bearish momentum, which could remain in play until a significant buying volume enters the market. For now, the bearish EMA crossover confirms that sellers are still dominating, and caution should be exercised when considering long positions.
Turning to the MACD (Moving Average Convergence Divergence), the indicator shows a widening gap between the MACD line and the signal line, with the histogram remaining in negative territory. This points to strong downward momentum, with no signs of slowing down yet. While the MACD is deeply bearish, traders may wait for the histogram to shrink as an early signal of potential upward reversal. However, until that happens, any upward movement may be short-lived and likely a dead-cat bounce, which presents opportunities for short positions rather than long trades.
In terms of key levels to watch, immediate resistance sits around $58,134, with stronger resistance at $58,214 and $58,230. Should the Bitcoin price manage to break these levels, it could open the door for a more sustained upward push, but for now, the downward bias suggests that such a scenario is unlikely in the short term. On the downside, the $51,340 support level offers a critical zone where buyers may step in. A break below this level, however, could trigger further downside, possibly towards the next lower support levels. $BTC #BTC☀️ The full analysis and trade strategy were posted on www.ecoinimist.com.