Bitcoin Poised for Bearish Turn; Dips Below Key Resistance Level

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In the financial landscape, Bitcoin has struggled to overcome a resistance level of $72,983. Despite still trading above its 1-day Simple Moving Average (SMA), the cryptocurrency has seen a decline. Following a harsh rebuttal at the aforementioned resistance level, Bitcoin retreated from $71,942 to $66,785 and slipped below its SMA in both the 1-hour and 4-hour charts. This fall beneath the SMA could trigger a shift in Bitcoin’s market character, possibly sounding the alarm for a bearish turn.

Presently, Bitcoin follows a slight upward drift and is currently trading at roughly $67,635. The cryptocurrency’s market capitalization boasts a staggering excess of $1.3 trillion, while its 24-hour trading volume exceeds $25 billion. That being said, there has been a 1.14% dip in market capitalization and a 6.07% decrement in trading volume over the past 24 hours.

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The 4-hour chart underpins the likelihood of a bearish trend, as Bitcoin has fallen below the SMA. This suggests that Bitcoin’s value could potentially embark on a downward course starting from this juncture. Further analyzing the market conditions, it is noted that the 1-hour MACD also signals a potential predisposition towards a bearish movement, as the MACD histograms are trending beneath the zero line. Concurrently, the MACD line and signal have intersected, also tending below the MACD zero line.

On the 1-day chart, Bitcoin’s price trajectory indicates a move toward the 100-day SMA, thus hinting at a potential downtrend. The trajectory of the 1-day MACD, compares similarly to that of the MACD histograms trending below the zero line, further solidifying the potential bearish outcome. When viewed in unison, current price configurations and the MACD examination from both timeframes suggest Bitcoin’s price is poised for a significant drop, possibly triggering a bearish trend.

Looking ahead, Bitcoin’s journey towards uncharted territories of all-time highs seems murky. Currently, Bitcoin faces a major resistance level of $73,203, and two significant support levels at $60,146 and $50,604. If Bitcoin succumbs to a bearish trend as predicted, it is expected to veer downwards, with a probable landing at the $60,146 support level. A breach below this point could potentially thrust it towards the deeper support level of $50,604.

Yet, there exists the potential for a sliver of bullish turnaround. Should Bitcoin manage to uphold its ground above these delineated support levels, it stands the chance to rise again, and aim for its previous $73,203 resistance level. On the off chance that Bitcoin overcomes this level, a new rally could be on the cards, possibly contriving a new high altogether. As of now, Bitcoin trades at $67,670 on the 1-day chart.