Bitcoin’s recent price action has raised concerns among traders as it lost a key local support level, suggesting a potential shift in market sentiment. As per an analysis by Nebraskangooner, the cryptocurrency seems poised to test lower support levels after a recent breakdown in price.
The price action on the 4-hour chart highlights a pivotal juncture for Bitcoin. Previously, Bitcoin faced substantial resistance around the $61,000-$62,000 mark, where sellers entered the market decisively, pushing the price lower. This resistance area, shaded in dark green on the chart, has consistently proven to be a supply zone, leading to multiple price rejections.
On the flip side, support levels have become the focal point of Bitcoin’s price action. Initially, the price held at the $59,200 support level, showing resilience with a bounce after a brief decline. However, the recent breakdown below this support indicates a bearish trend.
Bitcoin’s Future Uncertain as Analysts Debate Bearish Market StructureThe price hovers around $58,320, near the second support level at $57,600. Should this level fail to hold, Bitcoin could potentially test even lower support around $56,800. The moving averages are showing signs of convergence, hinting at a potential bearish crossover. If the moving averages cross negatively, this development could suggest further downward pressure.
As of press time, Bitcoin’s price is at $58,542.76, reflecting a 4.06% decline over the past 24 hours with a trading volume of approximately $25 billion. Additionally, the 1-day RSI stands at 42.96, indicating that the market might be slightly oversold. The 1-day MACD is trading below the signal line, reinforcing the bearish momentum and suggesting an imminent market reversal.
