Bitcoin recently encountered a significant rejection at the $62,498 resistance level, highlighting the prevailing bearish dominance in the market. This failure to surpass a crucial threshold underscores the strength of selling pressure and raises concerns about potential downward trends. The rejection at this key level serves as a cautionary signal for traders and investors, prompting a reassessment of market strategies.
The current market capitalization of Bitcoin stands at over $1.2 trillion, accompanied by a trading volume exceeding $27 billion. Despite a 31.26% increase in market capitalization, there has been a 35.43% decrease in trading volume over the last day. The cryptocurrency’s price is currently up by 1.2%, trading at approximately $61,582. However, the BTC price on the 4-hour chart remains actively bearish, trading below the 100-day Simple Moving Average (SMA).
Bitcoin is currently attempting a downward move following the rejection at $62,498, as indicated by a blue line on the chart. The 4-hour William Alligator formation suggests that the price of BTC may continue its bearish trend due to the absence of a successful cross of both the alligator lip and tooth above the alligator jaw. On the 1-day chart, Bitcoin’s price demonstrates a significant drop after being rejected for the second time at the $62,498 level, signaling further bearishness as it remains below the 100-day SMA.
Analyzing potential future scenarios for Bitcoin’s price movement post-rejection reveals various possibilities. If Bitcoin continues to move downward and breaks below the $60,152 support level, it may decline further to test the $58,523 support level and potentially lower levels if this support is breached. Conversely, if there is a rejection at the $60,152 support level, Bitcoin may initiate an upward movement towards the $64,515 resistance level. If this resistance level is surpassed, the cryptocurrency could see additional price growth towards the $71,909 resistance level and potentially exceed other levels above.
The current bearish trend in Bitcoin’s price movement underscores the significance of the recent rejection at the $62,498 resistance level. Traders and investors are advised to exercise caution and closely monitor the market’s developments to adapt their strategies accordingly in response to the prevailing bearish momentum.