Bitcoin (BTC) has recently exhibited indicators suggesting a possible decline in value, prompting analysts to urge caution as they anticipate the cryptocurrency potentially falling to the $59,000 level. This cautionary advice emerges amidst ongoing fluctuations in the crypto market, where investors vigilantly track Bitcoin’s trajectory.
At the time of writing, Bitcoin’s current price stands at $63,448, accompanied by a substantial 24-hour trading volume of $164.53 billion and a market capitalization of $1.25 trillion. Over the preceding day, BTC’s price has experienced a 4.10% decrease.
Bitcoin’s Bearish Outlook: $61,000 to $59,000 Targets
Crypto analysts Ali Martinez and Rekt Capital have recently delved into the intricate web of Bitcoin’s price movements, shedding light on pivotal signals that could shape its trajectory. Martinez, in particular, underscored two crucial sell indicators discernible on Bitcoin’s 12-hour chart.
Firstly, Martinez flagged the emergence of a foreboding death cross pattern between the 50 and 100 Simple Moving Averages (SMA). This ominous crossover traditionally heralds a shift in market sentiment towards the bearish end of the spectrum, signaling potential storm clouds gathering on the horizon.
Secondly, Martinez pointed out the appearance of a conspicuous red 9 candlestick courtesy of the TD Sequential indicator. Such a sighting typically signifies potential exhaustion in the prevailing uptrend, akin to a weary traveler pausing for breath before embarking on a daunting journey ahead.
Considering the significant indicators, Martinez issued a cautious advisory: if Bitcoin’s price falls below the crucial $63,300 support level, investors should prepare for potential downward movements. In such a scenario, the anticipated price targets could range from $61,000 to $59,000, marking potential vulnerable zones amid the volatile cryptocurrency trading market.
Rekt Capital echoed similar concerns, noting that BTC has struggled to surpass the $65,600 resistance level, failing to establish it as a solid support zone. Additionally, Rekt Capital observed a recurring pattern where Bitcoin’s price has consistently faced rejections around the $60,600 mark over several weeks, indicating a liquidity pool in that area.
Considering this, they proposed that if this downtrend continues, there is a chance we might see BTC returning back to this area of liquidity again. Such analysis highlights the need for watching important support and resistance zones as they can provide insights about where prices are headed over short periods of bitcoins.
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