It has been a rough year for Bitcoin and most major altcoins. Over the last 24 hours, Bitcoin has lost 1% of its value, which is indicative of consolidated price action. BTC hasn’t made much progress over the past week, as the coin has only lost 1.6% of its market value.
For several weeks, the coin has been oscillating between $16,400 and $18,000. The closest support line for the coin is at $16,000. The technical outlook for Bitcoin reflects the usual price action due to a decline in buying strength on the intraday chart.
Since the price of Bitcoin is still undecided for some time now, sellers have flooded the market, indicating that the coin is headed for another round of depreciation. Bitcoin trading volume has declined sharply, reinforcing that bears are responsible for the asset’s price.
If the selling pressure continues to increase, BTC will lose the $16,000 price level. Currently, BTC is down 76% from its all-time high, guaranteed in 2021.
Bitcoin Price Analysis: One Day Chart
BTC is trading at $16,550 at the time of writing. Bitcoin is trading near the immediate support level of $16,000. According to the technical outlook, the coin could experience further depreciation before starting to reverse its price action.
Overhead resistance for Bitcoin is $16,900; Clearing this could help the crypto reach $17,400 and eventually try to breach $18,000.
On the flip side, if Bitcoin moves below the current price mark, it will fall through $16,000 and exceed $15,800. The number of Bitcoins traded in the last session declined, indicating a loss of buying power for the asset.
Technical Analysis
BTC traders may witness a drop in asset prices during the upcoming trading session. The Relative Strength Index (RSI) is below the halfway line, near the 40 mark, indicating that sellers are outnumbering buyers. The RSI also recorded a downtick, indicating a loss of value.
Additionally, BTC price is below the 20-Simple Moving Average (SMA) line, which signals that sellers are driving price momentum in the market.
SMA also forms a cross of death; formed when the moving average line again crosses the shorter moving average line; in this case, the 50-SMA line is above the 20-SMA line. The sign on the chart is accompanied by strong bears in the market.
Other technical indicators also suggest that the sellers are here to stay longer. Moving Average Convergence Divergence (MACD) shows price momentum and reversals. MACD represents a sell signal as the indicator recorded a red signal bar after undergoing a bearish crossover.
A sell signal can mean that the price will decrease further. The Directional Movement Index, which reflects the direction of prices, is negative.
The -DI line (orange) is above the +DI line (blue). The Average Directional Index (red) is near the 20 mark with an uptick, confirming that the bearish action may gain momentum during the live trading session.
Featured Images From Unsplash, Graphics From TradingView.com
