Bitcoin (BTC), the world’s biggest cryptocurrency, has recently witnessed a slump, with the price approaching $66,736. This decline comes after a period of substantial bullish activity, which had earlier boosted BTC’s price above this level. As the price of the cryptocurrency approaches this vital level, the key question is whether the bulls can regain power and propel BTC back upward.
Using technical indicators, we will analyze the current price movement of Bitcoin in this study and consider the possibility of a rapid return to $66,736.
At the time of composing this article, Bitcoin’s Market Capitalization was over $1.3 trillion, and its exchanging volume was over $29 billion. Its price had increased by 0.62%, or about $67,238. Bitcoin’s advertise esteem has expanded by 0.68% and its exchanging volume by 64.24% in the past day.
BTC price action and technical indicators: What are they indicating?
On the 4-hour chart, Bitcoin has created two bearish momentum candlesticks pointing toward $66,736. Although BTC is still trading above the 100-day Simple Moving Average (SMA), it may dip to $66,736 before resuming its upward trend.
Source: NewsBTC
The 4-hour Composite Trend Oscillator indicates that BTC’s price may continue to fall toward the $66,736 mark, as the signal line has crossed below the indicator’s SMA, and both lines are currently striving to exit the overbought zone.
Bitcoin is attempting a downside retest after successfully breaking the $66,736 resistance level on the 1-day chart. Notably, the cryptocurrency asset has maintained significant positive momentum since breaking the 100-day SMA, which indicates that the current bearish trend may end near $66,736.
Source: NewsBTC
BTC is also trading above the 1-day SMA, implying that the current retreat may be short-term.
Possible scenario: Bitcoin rally or further decline?
Technical indicators and recent price fluctuations suggest Bitcoin prices could drop to $66,736. If cryptocurrency prices fall to this level and then rise, they will start moving towards the resistance level of $71,909. If the price breaks this resistance, it could continue moving up, perhaps testing the level of $73,811 and reaching a new all-time high.
But if the Bitcoin price drops to $66,736 and stays there, it will continue to fall toward the support level of $64,616. Bitcoin could drop further to test the support area of $60,152 and potentially head to lower levels if it breaks below this level.
