Technical Analysis of Bitcoin:
Pricing Consolidates After Negative Price Movements
Bitcoin's technical analysis on Wednesday revealed its current technical standing
through its trading volume and overall value. With the daily trading volume
reaching $45.30 billion and the digital currency achieving a total market
capitalization of $1.29 trillion, Bitcoin's liquidity and market diversity remain
strong. However, recent downturns have kept traders cautious
as Bitcoin's value dropped by 6% this week compared to the US dollar.
Bitcoin :
On the hourly chart, the price path of Bitcoin (BTC) displays
a steady downward trend, indicating bearish expectations in the near term.
Moderate volatility in the market during :
this period is suggested, indicating some resilience against major selling
operations. However, identifying support at $64,511 and resistance at $69,464
draws a limited trading range. This bearish trend is also confirmed
by the 4-hour chart, which features significant downward movements
signaling a consolidation phase with potential bearish risks.
Technical Analysis of Bitcoin
Bitcoin's chart against the US dollar on the daily chart on April 3, 2024.
A four-hour overview reveals a continued bearish bias, featuring increased
volatility and larger price movements. However, the confirmed support level
at $64,511 and a new resistance point at $71,391 indicate a wider range
However :
- medium-term analysis also suggests a market in need of direction
- as oscillators mostly hover in the neutral zone
- despite a slight bias towards sell signals.
On the daily chart :
Bitcoin presents a complex picture of alternating bullish and bearish patterns
indicating a wide-ranging consolidation period. Significant fluctuations
represented by wide price swings, demonstrate a high degree of market
uncertainty. However, the recent significant downturn reflects a bearish pattern.
Support at $59,313 :
and resistance at $73,794 define the boundaries of this stage in the long term
providing insight into critical levels that may determine Bitcoin's future trajectory.
Through a comprehensive view of
oscillators and moving averages, a cautious story is drawn.
- While oscillators such as the Relative Strength Index (RSI)
- and others indicate overall neutrality, the prevalence of
- bearish signals among moving averages—especially
in the short to
medium term—points to underlying negative pressure.
Significantly :
long-term moving averages suggest the potential
for a reversal, as positive signals appear on the 50, 100
and 200-day scales, reflecting a contrast to more immediate bearish signals.
Positive Assessment :
- Despite immediate bearish signals
- Bitcoin's technical analysis
- reveals underlying forces that
could pave the way for a bullish reversal.
- he emergence of "buy" signals in long-term moving averages
- especially starting from the 50-day moving average
- and beyond, indicates the possibility of
fundamental support and upward momentum.
Negative Assessment :
Clear bearish signs in Bitcoin's technical indicators in the short to
medium term cannot be ignored. The presence of prevailing
"sell signals" among oscillators and moving averages during these time frames
paints a cautious picture. Additionally, established resistance and the presence of
prominent bearish candles on charts indicate continued downward pressure.
However, the positions of most oscillators suggest a lack of strong momentum
which may lead to further consolidation or a bearish trend
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