Bitcoin price has entered a critical juncture, as the leading crypto asset shows signs of consolidation following a sharp sell-off from the $66,000 high. On September 30, 2024, the price stabilized around $63,682, supported by mixed technical indicators across multiple time frames. The possibility of a short-term bounce and further decline is currently creating an uncertain trading environment for investors.

Bitcoin

The 1-hour chart shows a sharp sell-off after bitcoin hit a recent high of $66,071, falling to a low of $63,259. Volume spiked during this drop, underscoring the strong bearish momentum. However, bitcoin found temporary support near $63,259, where the price action paused, signaling a potential recovery.

On the 4-hour chart, the rejection from $66,508 has led to a series of declines, indicating ongoing bearish pressure. With selling volume remaining high, bitcoin appears to be consolidating near the $63,000-$64,000 zone. This zone, which has previously acted as both support and resistance, will be crucial for any potential reversal. Holding above $63,000 could spark a recovery, but failing to hold this level could push the price lower.

The daily chart shows a broader picture of bitcoin’s retracement from a strong rally that began at $52,546. The correction now sees prices hovering near historically important support at $63,000. A break below this level could signal further declines, with potential targets at $60,000 and $58,000. Long-term buyers may find value in this area, but only if prices show stability.

On the oscillator front, the relative strength index (RSI) is neutral at 56, while the stochastic is giving a sell signal at 84, suggesting further downside. Momentum indicators, including the commodity channel index (CCI) and the awesome oscillator, are also neutral, highlighting the market’s indecision. However, the moving average convergence divergence (MACD) is pointing to a buying opportunity, suggesting a recovery.

Mixed signals from moving averages reflect uncertainty. Short-term moving averages like the 10-period exponential moving average and the simple moving average are flashing sell signals, but longer-term moving averages like the 50-period and 100-period moving averages are flashing buy signals. Investors should be vigilant, as the interplay between short-term selling pressure and long-term support levels could determine bitcoin’s next move.

Bull's Comment:

If bitcoin holds the key support level at $63,000, we could see a short-term recovery towards the $64,500-66,000 range. Positive signals from the long-term moving averages and the bullish divergence of the MACD suggest that bitcoin could regain bullish momentum, making this level a strategic entry point for buyers looking for a potential recovery.

Bear's Comment:

Failure to hold the $63,000 support level could trigger further selling pressure, pushing bitcoin down to key levels around $60,000 or even $58,000. Given the bearish signal from the Stochastic oscillator and the recent sell-off, the risk of a deeper correction remains high, urging traders to be cautious in expecting immediate price increases.

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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