Bitcoin price analysis today shows marked resistance to maintaining upward momentum as it grapples with crucial resistance levels. After briefly touching highs over $67,000 earlier in the week, Bitcoin encountered strong selling pressure, leading to a significant drop. The cryptocurrency failed to hold its ground, sliding to a ten-day low of $61,700, demonstrating the volatile nature of the market.
The sell-off was fueled by disappointing performances in the ETF sector, particularly with the new ETFs listed in Hong Kong, which saw much lower trading volumes than expected. This underperformance contributed to a bearish sentiment, as Bitcoin dropped nearly 2% within an hour during the European trading hours, falling under the $61,000 mark. Concurrently, Ethereum also witnessed a decline, shedding 2.8% to reach $3,066, further indicating broader market uncertainties.
Investor caution is palpable, with the recent slowdown in inflows to U.S.-based spot BTC ETFs stalling the previous uptrends in Bitcoin’s price. Despite these challenges, the cryptocurrency market continues to show resilience. Noteworthy is the incident of a solo miner successfully mining a block, which underscores the robustness of the Bitcoin network against the centralization concerns post-halving.
Looking ahead, Bitcoin remains under immense selling pressure, with the daily chart suggesting a consolidation within a narrow range. The immediate concern for traders is the potential break below the $60,000 support level, which could trigger further losses, with a target possibly extending down to $53,000. Conversely, a rebound above the $65,000 resistance could set the stage for a rally towards $70,000, contingent on regained investor confidence and favorable market conditions.
Bitcoin’s Downtrend Persists: A Technical Look at the 4-Hour Chart
The 4-hour chart for Bitcoin reveals a clear downtrend, as evidenced by the recent price movements. Since reaching highs around $67,000 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 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 $63,000 and descending toward $61,000. 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 $61,000, it could test further support near $60,000. 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 average, it could attempt to retest resistance near the $63,000 to $64,000 range. However, for a significant reversal, Bitcoin would need to sustain gains above these levels to shift the market sentiment.
