Bitcoin’s quest to sustain its upward trajectory has faced formidable resistance, as the cryptocurrency grapples with crucial support levels amidst escalating selling pressure. After a fleeting foray above $66,900 earlier this week, Bitcoin encountered a wave of sell-offs, plummeting to a ten-day low of $61,600 and underscoring the market’s inherent volatility.
The bearish sentiment was exacerbated by disappointing performances in the ETF sector, with newly listed ETFs in Hong Kong witnessing unexpectedly low trading volumes. This underperformance fueled a downward spiral, as Bitcoin shed nearly 2% within an hour during European trading hours, breaching the $61,000 threshold. Ethereum, too, fell victim to the broader market uncertainties, declining by 2.8% to $3,128.
Investor caution has taken hold, as the recent slowdown in inflows to U.S.-based spot BTC ETFs has stalled the previous uptrends in Bitcoin’s price. Nonetheless, the cryptocurrency market has demonstrated resilience, exemplified by a solo miner successfully mining a block, a feat that underscores the robustness of the Bitcoin network against centralization concerns post-halving.
As traders navigate these tumultuous waters, the immediate concern revolves around the potential breach of the $60,000 support level, which could trigger further losses, with a target potentially extending down to $52,000. Conversely, a rebound above the $65,000 resistance could pave the way for a rally towards $71,000, contingent upon regained investor confidence and favorable market conditions.
Bitcoin’s Downtrend Persists: A Technical Look at the 4-Hour Chart
An examination of the 4-hour chart for Bitcoin reveals a clear downtrend, as evidenced by the recent price movements. Since reaching highs around $66,000 earlier in April, Bitcoin has struggled to maintain upward momentum, consistently making lower highs and lower lows – a classic bearish pattern. The moving average convergence divergence (MACD) has crossed below the longer period line, further confirming the bearish sentiment in the market.
In the latest trading sessions, Bitcoin has breached critical support levels, most notably slipping below the psychological mark of $62,000 and descending toward $60,000. The Relative Strength Index (RSI) is lingering around 37, which is nearing the oversold territory but still offers room for further declines before a strong bullish reversal can be anticipated. Additionally, the MACD histogram is expanding in the negative zone, indicating increasing bearish momentum.
The current market dynamics suggest that Bitcoin could continue to face selling pressure. If the downtrend persists and Bitcoin breaks below the recent low of $60,000, it could test further support near $59,000. This level could be crucial for traders watching for a potential bounce or a deeper plunge. On the flip side, if Bitcoin manages to stabilize and push above the moving averages, it could attempt to retest resistance near the $62,000 to $63,000 range. However, for a significant reversal, Bitcoin would need to sustain gains above these levels to shift the market sentiment decisively.
