There has been a large amount of attention among traders and experts over the present position of Bitcoin, which is near the $64,500 support level. This major milestone is considered to be a crucial crossroads that has the potential to determine the direction of the cryptocurrency in the foreseeable future. Those who are positive on Bitcoin say, on the one hand, that the cryptocurrency might see a price increase due to the healthy fundamentals and revived investor interest. On the other side, a probable collapse is suggested by a pessimistic mood that is caused by macroeconomic pressures and regulatory uncertainty.
As of the time of this writing, the price of Bitcoin has increased by 0.04%, and it is now trading at about $65,621 in the previous twenty-four hours. The market capitalization of Bitcoin is more than $1.2 trillion, and its trading volume is greater than $34 billion. Currently, the market capitalization of Bitcoin (BTC) and the volume of trade have both decreased by 0.66% and 6.05%, respectively.
A Technical Analysis of Bitcoin Chart Patterns and Indicators Technical Analysis
The purpose of this research is to predict the future price actions of Bitcoin by analyzing the bullish and bearish situations and considering their relative importance. Despite the fact that it is still trading below the 100-day Simple Moving Average (SMA), the price of Bitcoin is now making a retracement on the 4-hour chart. This comes after the price was rejected at the $64,515 support level. In spite of the fact that it seems that the price is heading in the direction of the $66,736 level, it is possible that this is merely a temporary movement since it may drop down again.
Additionally, it is possible to see that the signal line and the simple moving average of the Composite Trend Oscillator indicator are still suffering in the oversold sector, which indicates that the price of Bitcoin will continue to decrease in the subsequent future.
After successfully breaking below the 100-day simple moving average (SMA) with significant negative momentum, the price of Bitcoin (BTC) is now undergoing a short-term retracement, as seen by the 1-day chart. It is possible that the flagship cryptocurrency may start to decline once again near the $64,515 support level after this retreat occurred.
Furthermore, it is possible to see that the signal line and the simple moving average of the 1-day Composite Trend Oscillator are both trying to fall below the zero line. This is something that can be viewed here. Because of the present configuration, it is possible to infer that the price of Bitcoin may move in a negative direction in the long term.
Examining the Cases That Are Both Bullish and Bearish
When it comes to the photos that are featured in this post, there are now four important support levels and three major resistance levels that you should keep an eye out for. The price of Bitcoin will begin to move lower toward the $64,515 support level in order to retest it if the negative trend associated with the price of Bitcoin continues as projected. In the case that Bitcoin falls below this level, it will continue to fall until it reaches the level of $60,158 and perhaps further support levels for further testing.
On the other hand, if the digital asset is unable to move in a negative direction and instead chooses to move in a positive direction, it will start progressing toward the $66,607 resistance level. In the event that it breaks over the previously indicated level, it may proceed to test its new high and climb much higher, so posing a threat to the $71,909 resistance level.