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The Bitcoin price plunged more than 6% in the last 24 hours to trade at $65,159.60 at press time.
The Bitcoin Price Breaks Support
4-hour chart for BTC/USDT (Source: TradingView)
In recent sessions, the Bitcoin price has seen a noticeable fluctuation in its trading pattern on the 4-hour chart, prompting investors and traders to scrutinize its technical posture closely. The market leader’s journey, marked by a descending sequence of closing prices, has raised eyebrows and questions about its near-term trajectory.
The Exponential Moving Averages (EMAs) provide a mixed signal, with the 9 EMA trending below the closing prices, suggesting a potential bearish momentum. On the other hand, the 20 EMA adds weight to this bearish outlook, hinting at a growing separation from the market’s current levels. The distance between the pair’s closing prices and these EMAs could signal a need for a correction or consolidation phase in the near future.
A pivotal aspect of this analysis is the MACD indicator, which showcases a downward trend with the MACD line diverging significantly from the signal line, indicating strong bearish momentum. The histogram values, moving deeper into negative territory, reinforce this bearish sentiment, suggesting that the sellers are in control of the market.
The RSI (Relative Strength Index) further cements the bearish outlook, with recent readings plummeting below the 50 mark. This underlines a substantial bearish momentum and suggests that the market might be entering an oversold territory.
Levels to Watch
As BTC navigates through this tumultuous phase, eyes are on crucial resistance and support levels. Resistance levels at $67,840.51 and $68,245.71 represent significant hurdles that bulls need to overcome to signal a potential reversal or consolidation. Conversely, support levels at $65,300.63 and $63,962.98 are critical for bears to break to continue their dominance and push for lower lows.
Given the current technical setup, traders might consider potential entry points for short positions around the resistance levels of $67,840.51 and $68,245.71, with exit points or take-profit levels near the support zones of $65,300.63 and $63,962.98. For those looking at potential long positions, a decisive break above $68,245.71 with adequate volume could serve as a bullish entry point, targeting the next resistance levels or higher.
In conclusion, the Bitcoin price on the 4-hour chart presents a bearish outlook, with technical indicators suggesting sustained downward momentum. Traders and investors should closely monitor these levels and indicators to make informed decisions. Potential long or short positions should be considered with caution, keeping in mind the current bearish bias and the outlined resistance and support levels.
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. Ecoinomist 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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