After failing to break the $72,983 resistance level, Bitcoin’s price continues to decline. While Bitcoin price continues to trade above the 1-day uncomplicated moving average (SMA), this rejection has led to the crypto asset falling from $71,942 to $66,785 and moving below the SMA on both the 1-hour and 4-hour charts . A drop below the SMA may cause a change in character and the price will drop.
Price at the time of writing Bitcoin was trading at around $67,635 and up 0.14% with a market capitalization of over $1.3 trillion and a 24-hour trading volume of over $25 billion. Market capitalization and trading volume decreased by 1.14% and 6.07%, respectively, in the last 24 hours.
Bitcoin price conditions on the 4-hour and 1-day chart
Since the 4-hour time frame, BTC has fallen below the uncomplicated moving average. This means that from this point on, the BTC price may start to fall.
The one-hour MACD also indicates that BTC may decline as the MACD histograms are trending below the zero line. Moreover, the MACD line and the signal crossed, trending below the MACD zero line.
From the 1-day chart you can see that BTCprice is approaching the 100-day uncomplicated moving average. The one-day MACD is also forming a pattern that suggests that Bitcoin’s price may decline as the histograms are already trending below the MACD zero line.
The MACD line and the MACD signal line have crossed and are heading towards the zero MACD line. By examining price formation and MACD in both time frames, BTC could see a huge drop and possibly start a downtrend.
A road to a novel all-time record on the horizon?
There is currently one major resistance level at $73,203 and two major support levels at $60,146 and $50,604. If the price of Bitcoin drops bearish as expected, it will begin to decline towards the support level of $60,146.
If the stock falls below this level, it could move further to test the support level at $50,604. There are also other support levels below $67,635 that BTC could move to test if there is a break below the $60,146 and $50,604 support levels.
However, given that the digital asset will not break below any of the support levels mentioned above, it will start moving upwards towards the previous resistance level of $73,203. Meanwhile, if it breaks above this level, a novel rally could begin and could create a novel high.
Featured image from iStock, chart from Tradingview.com
