Bitcoin is currently experiencing a noticeable decrease, and its price is constantly approaching the key mark of $60,000. Market sentiment is becoming increasingly bearish, driven by a combination of macroeconomic factors and the recent augment in selling pressure.
This change has made it challenging for Bitcoin to sustain higher levels, causing concern among investors and traders. When the bears take over the $60,000 threshold becomes the focal pointand many are keeping a close eye on whether a given crypto asset can find support or continue its downtrend.
Using technical indicators, this analysis focuses on analyzing Bitcoin’s current price action and its impact on the future of the asset, focusing on the 4-hour and 1-day time frame.
As of this writing, Bitcoin’s market capitalization is over $1.2 trillion and its trading volume is over $17 billion. The cryptocurrency’s price is currently down 3.11%, trading at around $62,334. Despite a 3.09% drop in market capitalization, trading volume increased by 96.46% over the last day.
Current Bitcoin market overview
Currently, as can be observed on the 4-hour chart, Bitcoin price is actively sinking and has dropped significantly below the support level of $64,515. You can also see here that the price is falling towards the support level of $60,158.
The above statement is also supported by the 4-hour Relative Strength Index (RSI) as the indicator’s signal line has dropped sharply below 50% and is currently in the oversold zone. This means there is a chance for prices to fall further.
Bitcoin price on the 1-day chart is also showing an busy downtrend as it is currently trading below the 100-day Straightforward Moving Average (SMA), falling towards the support level at $60,158 with a robust downtrend.
Finally, with the formation of the 1-day RSI, it can be suggested that the BTC price poses a greater risk of extending the decline as the signal line of the indicator, which has fallen below 50%, is actively trading near the oversold zone.
Key Support Levels: Why $60,158 Matters
Currently, BTC is falling towards the support level of $60,158. If the price reaches this level, two possible events can occur: either it will be rejected and start to rise, or it will break above this level and continue to fall.
Therefore, if a rejection occurs at the $60,158 support level, BTC may start moving upwards towards the $64,515 resistance level. If this level is breached, the crypto asset could experience more price upside towards the $71,909 resistance level and possibly other levels above.
On the other hand, if the BTC price falls below this support level, it will continue to fall, testing the support level at $56,524. If this level is broken, Bitcoin may do so decrease further still, testing the $50,604 support level and possibly even lower levels.
Featured image from iStock, chart from Tradingview.com
