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The Bitcoin price plummeted more than 6% in the past 24 hours to lose the $60K support and trade at $57,248.29 at press time.
Over the past three months, Bitcoin has seen a roughly 20% drop, yet this doesn’t seem to worry crypto traders, who view it as a normal part of the market cycle.
“Seeing a 20% correction in BTC for the fourth time in 12 months is quite standard,” remarked Raoul Pal, CEO of Real Vision, in an Apr. 30 post on X, noting that Bitcoin’s current price is just a fluctuation compared to its peak of $75,830 on March 14.
This is the 4th 20% correction in BTC in 12 months…pretty ordinary stuff. pic.twitter.com/YT3gs4jUlG — Raoul Pal (@RaoulGMI) April 30, 2024
“This is just what the cycle requires to realign with the historical price patterns and the typical Halving Cycle,” commented a crypto trader known as Rekt Capital on the same day.
“The price could dip to $40K or surge to $400K. That’s the nature of the market, making it an excellent wager,” Thomas Fahrer, CEO of the crypto-focused review site Apollo, added.
Bitcoin Price Technical Analysis
4-hour chart for BTC/USDT (Source: TradingView)
Recent movements by the Bitcoin price on the 4-hour chart have shown notable fluctuations, revealing a potentially bearish sentiment in the near term. The crypto’s closing prices have been on a downward trajectory, with the most recent figures descending from $60,672.00 to $57,344.00. This decline aligns with several technical indicators suggesting increased selling pressure.
The 9 Exponential Moving Average (EMA) and the 20 EMA both indicate a bearish crossover, with the shorter-term 9 EMA consistently trending below the 20 EMA across the recent sessions—moving from $61,566.04 down to $59,479.20, compared to the 20 EMA’s drop from $62,408.12 to $61,002.09. Such crossovers typically signal a bearish market outlook, advising caution among investors looking to go long.
Moreover, the Moving Average Convergence Divergence (MACD), a momentum oscillator, further underscores the bearish sentiment. The MACD line remains well below the signal line, with the histogram values showing increasing negative divergence—specifically, the histogram has deepened from -276.88 to -502.56 in recent periods. This pattern suggests that the downward momentum is gaining strength, which could imply further price declines.
The Relative Strength Index (RSI) presents additional cause for concern, as it has hovered below 40 in recent periods, indicating a bearish momentum. Current readings ranging from 36.87 to a particularly low 25.78 suggest that Bitcoin is either nearing or currently experiencing oversold conditions. While this might typically suggest a potential buying opportunity, the consistent downward movement advises that caution be maintained.
Key Levels to Watch
Focusing on significant technical levels, the immediate resistance and support zones are pivotal for determining potential market movements. The nearest resistance levels are situated at $62,387.90, $62,936.02, and $63,842.02. A break above these levels could signal a potential reversal or pause in the bearish trend. On the flip side, the support levels to watch are placed at $51,731.99, $51,580.23, and $51,090.01. A fall below these support zones could indicate a continuation of the bearish trend and potentially lower prices ahead.
Given the current market indicators and trends, traders might consider maintaining a bearish outlook in the short term. Potential entry points for short positions could be considered on any weak retracements to resistance levels, particularly around $62,387.90. Conversely, should the price approach key support levels, traders should exercise caution; a bounce from these levels could provide potential entry points for long positions, though confirmation of a reversal would be prudent before any significant commitment.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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