Leading cryptocurrency Bitcoin took a surprising hit recently when it failed to maintain momentum beyond the $62,498 resistance level, underscoring the widespread bearish persuasion currently gripping the cryptocurrency market. This inability to break that crucial ceiling speaks volumes about the significant selling pressure that is building across the board, fanning the embers of concern about the possibility of a downtrend in the near future.
The rejection of resistance at this crucial turning point has generated a wave of unease among traders and investors, forcing a major re-evaluation of market strategies. As bearish momentum refuses to relent, the question on everyoneโs lips is about the trajectory that Bitcoinโs tangled web of price movements could take and how large-scale the outcome will be of significance for the entire cryptocurrency market.
At the time of publication, Bitcoin, the undisputed king of cryptocurrencies, boasts a staggering market capitalization exceeding $1.2 trillion and recording trading volume exceeding $27 billion. Despite the prolonged sell-off, the crypto-avatar is currently recording a slight rally of 1.2%, with its price hovering near $61,582. Amid a 31.26% rise in market cap, the downward trajectory is evident with a 35.43% contraction in trading volume over the previous day.
Technical indicators paint a vivid picture of the gloomy market developments. It is an active bearish phase for Bitcoin as the 4-hour chart reveals a trading trend below the 100-day simple moving average, a well-known measure of market trends. In essence, Bitcoin is grappling with a downward trajectory after a hurdle at $62,498, which is marked by a blue line on the chart.
The inclusion of the 4-hour William Alligator, a well-known technical indicator, signals further bearish continuation as both the lip and teeth posture on the alligator's jaw remain subtly unfulfilled.
Similarly, the 1-day chart visibly echoes signs of bearish dominance. Notably, Bitcoin price suffered a significant drop after the second rejection at the $62,498 level. More worrying is its persistence below the 100-day simple moving average, which indicates an impending bearish trend.
The bearish trend also remains on the 1-day Alligator William. A cross established of the Alligator's lip and teeth on the Alligator's jaw shows a persistent difference that holds up over time, indicating further bearishness for Bitcoin.
From an overall point of view, Bitcoin price is firmly entrenched within active bearish territory, as affirmed by the price action and indicators on the 4-hour and 1-day charts. Currently, market dominance is undeniably in the hands of the bears.
Moving on to an analysis of the numerous scenarios that can play out after the rejection, if Bitcoin maintains a bearish momentum that breaks above the $60,152 support level, there is a possibility that it will drop to duel with the $58,523 support level. If this level gives way, we could be witnessing a ruthless push that takes down numerous lower levels.
On the other hand, a strong resistance at the $60,152 support level could propel Bitcoin to break through to the $64,515 resistance level. A successful breakout could signal a fresh growth momentum for Bitcoin towards the $71,909 resistance level and potentially beyond.
As it stands, Bitcoin is trading at $61,515 on the 1D chart. Only time will tell if it can break out of this bearish mess or if it is destined to dance to the bearโs tune for a while longer. But one thing is clear: market strategies are set to undergo major changes.
