Bitcoin recently faced significant rejection at $62,498 resistance level, which highlights the bear’s dominant dominance in the market. Failure to cross the critical threshold highlights the strength of selling pressure and raises concerns about potential downward trends.
A rejection at this key level signals caution among traders and investors, prompting a re-evaluation of market strategies. As the bearish trend continues, this analysis examines the possible impacts of Bitcoin’s price movement and the broader implications for the cryptocurrency market.
As of this writing, Bitcoin’s market capitalization is over $1.2 trillion and its trading volume is over $27 billion. The cryptocurrency’s price is currently up 1.2% and is around $61,582. Despite a 31.26% enhance in market capitalization, trading volume has decreased by 35.43% over the past day.
Technical Indicators: Signs of Continued Downward Pressure
BTC price there is still an lively downward trend on the 4-hour chart and prices are below the 100-day plain moving average (SMA). Currently, Bitcoin is attempting a move down after rejecting the price of $62,498, which is indicated by the blue line on the chart.
The formation of a 4-hour William Alligator signals that the BTC price may extend its downtrend as there will be no successful crossing of both the alligator lip and the tooth above the alligator’s jaw.
On the 1-day chart, it can be seen that Bitcoin’s price is falling sharply after being rejected for the second time at $62,498, indicating an enhance in negative sentiment even though the price is still below the 100-day moving average.
Additionally, the 1-day William Alligator also indicates more bearishness for BTC. After the successful crossing of the Alligator Lip and the Teeth Below the Alligator Jaw, they maintain a good distance from each other.
It is critical to note that the price of crypto assets, from an overall perspective, is actively bearish. Taking into account the price action and indicators on both the 4-hour and 1-day chart, it can be seen that bears currently dominate the market.
Potential scenarios: what’s next for Bitcoin?
An analysis of potential BTC price movement scenarios following a trade rejection reveals that if Bitcoin continues its downward move and breaks the $60,152 support level, it could drop even lower and test the $58,523 support level, and possibly also test other lower levels if the price will cross it.
However, if there is a rejection at the $60,152 support level, Bitcoin could start moving higher towards the $64,515 resistance level. If this level is breached, the crypto asset could experience a larger price rally towards the $71,909 resistance level and possibly other levels above it.
Featured image from iStock, chart from Tradingview.com
