Bitcoin has been facing a significant decline, with its price inching closer to the crucial $60,000 mark. This decline is primarily driven by a combination of macroeconomic factors and an increase in selling pressure, resulting in a bearish market sentiment. Investors and traders are growing anxious as Bitcoin struggles to maintain higher price levels, making the $60,000 threshold a focal point for many.
Analyzing Bitcoin’s current price action on the 4-hour chart reveals a bearish trend, with the price dropping below the $64,515 support level and approaching the $60,158 support level. The Relative Strength Index (RSI) on the 4-hour chart further confirms this bearish sentiment, as the signal line of the indicator has dipped below the 50% mark and is trending towards the oversold zone. This suggests a potential for further price decline in the near future.
On the 1-day chart, Bitcoin’s price is also bearish, trading below the 100-day Simple Moving Average (SMA) and heading towards the $60,158 support level with strong downward momentum. The 1-day RSI reinforces this bearish outlook, with the signal line of the indicator below the 50% mark and trending close to the oversold zone. This indicates a higher probability of Bitcoin extending its decline in the coming days.
Potential Price Scenarios
If Bitcoin reaches the $60,158 support level, two possible scenarios may unfold. In the first scenario, the price could experience a rejection at this support level and start moving upwards towards the $64,515 resistance level. If this resistance level is breached, Bitcoin may see further price growth towards the $71,909 resistance level and potentially higher levels. However, in the second scenario, if Bitcoin breaks below the $60,158 support level, it could continue to fall towards the $56,524 support level. A further breakdown below this level could lead to even more significant declines, with Bitcoin testing the $50,604 support level and potentially lower levels.
Overall, the current state of Bitcoin’s price action suggests a bearish trend with the potential for further downside momentum. Traders and investors should closely monitor key support and resistance levels to determine the next move for the cryptocurrency.
