After beginning the day with positive momentum, the BTC/USD pair plummeted to a low of $27,439.65 and has since shown a strong bear trend. As of press time, BTC was priced at $27,699.78, representing a 2.28% drop from the previous high of $28,527.72.
The pair gained 0.45% intraday after achieving a daily high of $27,844.69 and setting the day’s high of $28,527.72.
Market capitalization and 24-hour trading volume fell 2.20% and 18.07%, respectively, to $536,339,096,158 and $38,434,887,606. This drop represents a pessimistic market mood, indicating traders are selling off their assets in anticipation of a future bear trend.
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BTC/USD 1-Hour Technical Analysis
The selling pressure in the BTC/USD market remained intense, with traders actively looking for profit-taking chances as the pair failed to break above significant support levels.
The 100-day and 50-day moving averages (MAs) intersect at 27572.14 and 27945.09, respectively. The movement of the shorter-term moving average above the longer-term moving average shows that BTC/USD bears have the upper hand in the near run.
This move indicates that the bearish trend looks to be continuing in the short term, but further activity is required to break out of its current range. A solid closing over $28,000 may signify the start of a renewed bull run, but traders should be careful since there are no apparent support levels beyond this point.
The Relative Strength Index (RSI) remains below 50 and is now at 45.72, suggesting a range-bound market with no apparent direction as buyers are still insufficiently active to drive prices much higher.
Nonetheless, the RSI has not fallen below 40, indicating that it is no longer in the oversold range and may imply a probable positive trend in the near future.
The Moving Average Convergence Divergence (MACD) indicates that it is approaching the bearish zone, as the MACD line (blue) has crossed below the signal line (orange). This indicates that the negative trend in the BTC/USD pair continues to dominate the positive momentum.
BTC/USD 24-Hour Technical Analysis
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In the 24-hour price chart, the RSI is 70.18, indicating an overbought market. This movement shows that, while being negative in the near run, bulls may be eager to take advantage of current pricing.
While the MACD line is in a positive zone and reads 1296.76, a bullish crossing is probable in the near future. As a result, traders should keep an eye on the BTC/USD support and resistance levels, as prices may soon break above the current range.
This move is supported by the histogram trend in the positive zone, which indicates that the bulls are getting the upper hand and steadily driving prices up in the long run.
The Bollinger band widening motion on the Bitcoin 24-hour price chart indicates a rise in volatility and uncertainty in the market, which might imply a possible price breakout or trend reversal. This tendency is illustrated by the top band touching 29081.18 and the bottom bar touching 18708.13, respectively.
Since the price moves towards the upper band, it may suggest an overbought position and a possible reversal of the present negative trend. In contrast, the price movement approaching the bottom bar may indicate an oversold state and a potential buying opportunity.
In conclusion, the BTC/USD pair is trapped in a range with minimal upward potential. But, a breakthrough over its resistance level may give extra momentum and increase trading chances.