Following the failure to break above the $72,983 resistance level, the price of Bitcoin has continued to drop. Although Bitcoin’s price is still trading above the 1-day Simple Moving Average (SMA), this rejection has led to the crypto asset dropping from $71,942 to $66,785 and moving below the SMA both in the 1-hour and the 4-hour chart. This drop below the SMA could trigger a change of character and the price will go bearish.
As of the time of writing the price of Bitcoin was trading at around $67,635 and was up by 0.14% with a market capitalization of over $1.3 trillion and a 24-hour trading volume of over $25 billion. Its market capitalization and trading volume are both down by 1.14% and 6.07% respectively in the last 24 hours.
Bitcoin Price Conditions In 4-Hour And 1-Day Chart
From the 4-hour timeframe, BTC has dropped below the simple moving average. This indicates that the price of BTC might begin to move downward from this point.
The 1-hour MACD also indicates that BTC could go bearish as the MACD histograms are trending below the zero line. Also, the MACD line and the signal have crossed each other trending below the MACD zero line.
From the 1-day chart, it can be observed that BTC‘s price is moving toward the 100-day simple moving average. The 1-day MACD also creates a formation suggesting that Bitcoin’s price might go bearish, as the histograms are already trending below the MACD zero line.
The MACD line and the MACD signal line have crossed each other and are heading toward the MACD zero line. Examining the price formations and that of MACD from both timeframes, BTC could make a huge drop and probably start a bearish trend.
A Path To New All-Time High On The Horizon?
Currently, there is one major resistance level $73,203, and two major support levels $60,146 and $50,604. If the price of Bitcoin goes bearish as predicted, it will start to move downward toward the $60,146 support level.
Should it break below this level, it could move further to test the $50,604 support level. Also, there are other support levels below $67,635, which BTC could move on to test if there is a break below the $60,146 and $50,604 support levels.
However, given that the digital asset fails to break below any of the support levels mentioned above, it will begin to move upward toward its previous resistance level of $73,203. Meanwhile, if it breaks above this level, it might start a new rally possibly to create a new high.
Featured image from iStock, chart from Tradingview.com
Godspower Owie
My name is Godspower Owie, and I was born and brought up in Edo State, Nigeria. I grew up with my three siblings who have always been my idols and mentors, helping me to grow and understand the way of life. My parents are literally the backbone of my story. They’ve always supported me in good and bad times and never for once left my side whenever I feel lost in this world. Honestly, having such amazing parents makes you feel safe and secure, and I won’t trade them for anything else in this world. I was exposed to the cryptocurrency world 3 years ago and got so interested in knowing so much about it. It all started when a friend of mine invested in a crypto asset, which he yielded massive gains from his investments. When I confronted him about cryptocurrency he explained his journey so far in the field. It was impressive getting to know about his consistency and dedication in the space despite the risks involved, and these are the major reasons why I got so interested in cryptocurrency. Trust me, I’ve had my share of experience with the ups and downs in the market but I never for once lost the passion to grow in the field. This is because I believe growth leads to excellence and that’s my goal in the field. And today, I am an employee of Bitcoinnist and NewsBTC news outlets. My Bosses and co-workers are the best kinds of people I have ever worked with, in and outside the crypto landscape. I intend to give my all working alongside my amazing colleagues for the growth of these companies. Sometimes I like to picture myself as an explorer, this is because I like visiting new places, I like learning new things (useful things to be precise), I like meeting new people – people who make an impact in my life no matter how little it is. One of the things I love and enjoy doing the most is football. It will remain my favorite outdoor activity, probably because I’m so good at it. I am also very good at singing, dancing, acting, fashion and others. I cherish my time, work, family, and loved ones. I mean, those are probably the most important things in anyone’s life. I don’t chase illusions, I chase dreams. I know there is still a lot about myself that I need to figure out as I strive to become successful in life. I’m certain I will get there because I know I am not a quitter, and I will give my all till the very end to see myself at the top. I aspire to be a boss someday, having people work under me just as I’ve worked under great people. This is one of my biggest dreams professionally, and one I do not take lightly. Everyone knows the road ahead is not as easy as it looks, but with God Almighty, my family, and shared passion friends, there is no stopping me.
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