Bitcoin Technical Analysis: Uptrend Intact, But Indicators Warn of Short-Term Correction

Bitcoin is trading between $62,856 and $63,016 at press time, with a market capitalization of $1.24 trillion and a 24-hour trading volume of $23.87 billion. On the day, the price fluctuated between $62,120 and $63,909, showing signs of consolidation. Despite the overall uptrend, oscillators and moving averages paint a mixed picture, hinting at a possible correction while signaling key levels to watch for continued upside momentum.

Bitcoin

On the 1-hour chart, bitcoin (BTC) rallied from $61,816 to a high of $63,975 but is currently consolidating below $63,500. Moving averages remain bullish, with the 10-period exponential moving average (EMA) at $62,575 and the 10-period simple moving average (SMA) at $62,700 signaling bullish momentum. However, oscillators like the relative strength index (RSI) at 55 indicate neutrality, indicating no overbought or oversold conditions.

The 4-hour chart reflects a broader uptrend that started at $59,860 on October 3, peaking at $63,975. The EMAs and SMAs continue to support bullish sentiment, with the 50-period EMA at $61,502 and the 50-period SMA at $60,686 both pointing to buying conditions. However, momentum oscillators such as the moving average convergence divergence (MACD) at 516 and the awesome oscillator are showing bearish divergence, suggesting a potential slowdown.

The daily chart highlights bitcoin’s long-term uptrend, which began with the rally from $52,546 in early October. The 100-period EMA at $61,524 and the SMA at $61,097 reinforce bullish conditions, but the 200-period SMA at $63,549 signals resistance ahead. Oscillators are mixed, with the commodity channel index (CCI) at 4 remaining neutral and the momentum indicator at -2,702 suggesting a loss of bullish strength. A pullback to the $60,500-$61,500 zone could provide a better entry point.

Bull's Comment:

Bitcoin’s overall uptrend remains intact, supported by bullish signals from moving averages across multiple time frames. The 1-hour and 4-hour charts show strong momentum, with key support holding at $63,000 and further upside potential to $64,000-66,000. As long as buyers maintain control and volume increases, a breakout above recent highs could send bitcoin to new resistance levels. The long-term trend remains in favor of the bulls.

Bear's Comment:

Despite the bullish momentum, oscillators like the MACD and momentum indicators are showing signs of weakness, suggesting a potential slowdown or short-term correction. With major resistance near $63,549 on the daily chart and declining volume, the risk of a drop to $61,000 or lower is increasing. Short sellers could capitalize on these signals, especially if bitcoin fails to break above current resistance levels.

What do you think about the bitcoin market performance on Monday? Share your thoughts and opinions on the topic in the comments section below.
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