Bitcoin (BTC), the world’s leading cryptocurrency, has recently seen a pullback, with its price heading towards the $66,736 level. This decline comes after a period of significant bullish activity that previously pushed BTC’s price above that level. As the crypto asset’s price approaches this critical level, the key question is whether bulls can return strength and put BTC back on an upward path.
In this analysis, we will analyze the recent price movement of Bitcoin using technical indicators and consider the possibility of a bullish revival at $66,736.
With a market capitalization of over $1.3 trillion and trading volume of over $29 billion, BTC price is up 0.62% to around $67,238 at the time of writing. Over the previous day, there was a 0.68% enhance in BTC market value and 64.24% in trading volume.
BTC Price Action and Technical Indicators: What Do They Signal?
Currently on the 4-hour chart, Bitcoin has formed two bearish momentum candles heading towards the $66,736 level. Although BTC is still trading above the 100-day straightforward moving average (SMA), the price could fall to the $66,736 level before it starts to rise again.
Furthermore, the 4-hour Composite Trend Oscillator indicates that BTC price may maintain a downward trajectory towards the $66,736 level as the signal line has crossed below the indicator’s moving average and both lines are currently trying to break out of the overbought zone.
On the one-day chart, after successfully breaking through the $66,736 resistance level, Bitcoin is trying repeat the test with a bearish move back to that level. It is also worth noting that since rising above the 100-day SMA, the cryptoasset has maintained sturdy bullish momentum, suggesting that the current pullback could stop at $66,736.
Finally, the 1-day composite trend oscillator indicates that BTC price remains bullish as both the signal line and the indicator’s SMA are trying to rise above the zero line. BTC is also trading above the 1-day SMA, and based on these indicators, it can be suggested that the current pullback may be short-term.
Potential Scenarios: Upward Rebound or Further Decline in Bitcoin Value?
Based on current price action and technical indicators, Bitcoin price could fall to $66,736. If Bitcoin price If the price breaks above this resistance, it could continue to rise, testing the $73,811 level and potentially moving further up to make a recent all-time high.
However, if BTC price falls to the $66,736 level and closes below, it will continue to fall towards the $64,616 support level. Once Bitcoin breaks below this level, it will continue to fall to test the $60,152 support range and possibly other lower levels.
Featured image from iStock, chart from Tradingview.com
