Bitcoin Drops Below 4-Hour MA

The price after the fall is Bitcoin The downward trend continues. The coin has fallen over 6% from its previous high after failing to break above its 100-day simple moving average (SMA) and trend line.

Will the price of BTC continue to move in a downward direction or will it reverse and start moving in an upward direction?

At the time of writing, BTC price is trading around $62,972, down about 28% from its all-time high and down 1.27% in the past 24 hours. The price is trading below the 100 SMA on the 4-hour chart, but is still trading above the 100 SMA on the daily chart.

Current status of indicators and their implications

Looking at the chart, technically support and resistance levels have formed at $59,653 and $67,255. However, there is more support and resistance level Created when prices continue to fall.

4-hour moving average: If we observe the chart technically from the 4-hour time frame, we can see that the price is trending below the 100-day moving average, as shown in the image below. This suggests that prices are on a downward trend and may fall further.

4 Hours RSI Indicator: The Relative Strength Index (RSI) indicator here suggests a downtrend as the RSI signal is crossing and trending below the 50% line .

Bitcoin

MACD indicator The 4-hour chart also suggests that the price may continue to move lower as the MACD histogram is trending below the zero line. As seen in the image above, both the MACD line and the signal line have crossed and are trending below the MACD zero line, indicating a bearish trend.

possible outcomes

The above indicator settings suggest that Bitcoin price remains bearish and could fall further.

If Bitcoin continues its decline and falls below the $59,653 support level, a significant correction could occur to create a new support level. However, if the price fails to break below this support level, an upward corrective movement could begin towards the previous level of $67,255, and if the price manages to break through this level, the price will move higher. It will start a trend.

Bitcoin
BTC trading at $62,950 on 1D chart | Source: BTCUSDT tradingview.com

Featured image from iStock, chart from Tradingview.com

Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell, or hold an investment, and investing naturally involves risk. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.

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