The Bitcoin price movements in the past 24 hours depict a clear downward slope starting as high as $71,333 before dropping significantly below the $70,000 mark. This sharp drop which happened in a very short time, shows a bearish attitude that dragged the price of Bitcoin to approximately $68,500.
Throughout the day, the price movement stabilized somewhat, maintaining a level of just under $69,500 and trading at 69,300 at press time. This stabilization signifies a cooling-off period during which investors start reviewing their decisions. Such periods occur after high volatility as the market tries to recover from the effects of the initial dip and looks for a direction to either go up or down.
BTC/USD 24hr Price Chart( Source: CoinMarketCap)
As for the trading volume and Market Capitalization, the trading volume of Bitcoin increased by 20.67% to $32.74 billion as the market turned active, possibly due to traders who wanted to cash out at low prices or use the lower prices to make more trades during the lows.
However, although the trading volume rose, the total market capitalization of Bitcoin decreased by 2.62%, which demonstrates a decline in the price index. This loss in market cap is in alignment with the observed price drop, and reflects overall effects of the day’s volatility on market capitalization.
BTC/USD Technical Analysis
As displayed in the 4-hour price chart, there exist interplays between Bitcoin prices and various Fibonacci retracement levels. Bitcoin is presently trading close to $69,443 and has recently touched multi-month high near $71,911. This peak was slightly below the Fibonacci level of 0. 236 at $69,614.33, where there was some resistance as the price dropped.
Based on the chart, there is evident sell pressure around the higher retracement levels as Bitcoin struggles to sustain its upward movement past these points
BTC/USD 4-Hour Price Chart (Source: Trading View)
The other Fibonacci retracement levels further down, at $67,81098 (0.382), $66,54435 (0.5), and $65,27771 (0.618) create support zones. For instance, the price has remained above the 0.382 level at $67,81098 in the recent movements which imply that this is a strong support area which strengthens the bulls when the prices get to the region of these indicators.
In addition, the Moving Average Convergence Divergence (MACD) indicator at the moment indicates the MACD line is at -44.09, which is below the signal line at 222.07, which shows that the momentum is bearish as the gap between them increases. This means that it is possible that the recent price changes may continue in the same trend; if no crossover occurs, the negative trend may reverse.
This bearish outlook is also supported by the histogram, where each bar is below the baseline and there is increasing intensity of the bearish momentum. Furthermore, the fact that the red bars remain extended for a long period shows that bearish signals are still prevalent.
The Relative Strength Index (RSI) on the Bitcoin chart is at 42.78 indicating bearish conditions as it is below the 50 neutral mark. This value shows that the market is still in a slight negative territory as the RSI keeps decreasing from a high of 53.75. This drop could indicate that buying momentum is slowing down, and if this trend continues, a reversal is imminent.
Further, the RSI’s decreasing position from above the midpoint to lower levels of the moving average also supports a continuing bearish situation. If the RSI goes down further and crosses the 30 level, the market will be oversold, and the bulls may take over. Conversely, as the RSI is just below 50, traders may perceive a higher downside potential in the near term.
