Bitcoin's value is currently on a downward trend, resting at $63,950 per unit as of June 21, 2024. Despite some possible entry points, the market is facing strong selling pressure across all time frames. Technical indicators are advising traders to proceed with caution as bearish patterns dominate the charts.
Short-term analysis on the 1-hour chart reveals a consistent decline in bitcoin's value, with lower highs and lows reaching $63,501. Trading volume remains low, indicating weak momentum. Traders are advised to consider entering the market between $63,000 and $63,500 if there is a reversal with increased volume, aiming for an exit near the resistance level of $67,000 or higher.
The 4-hour chart also shows a significant downtrend, with bitcoin's price plummeting from $67,260 to $63,501. High selling pressure is visible through spikes in red volume bars. A potential entry point near the $63,000 support level is suggested if a bullish reversal is confirmed with higher buying volume. Exit strategies should target the previous resistance level of $67,260 to secure potential gains.
A deeper analysis of the daily chart indicates a clear downward trend, with bitcoin dropping from a high of $71,958 to a low of $63,501. Selling pressure remains consistent. Long-term traders may find an entry point if the price stabilizes around $63,000 and shows a strong reversal pattern, such as a bullish engulfing candle with increased volume. Exiting near the $67,000 to $68,000 levels is recommended based on historical resistance levels.
Various oscillators like the RSI, Stochastic, CCI, and awesome oscillator present a neutral outlook, while momentum indicators offer mixed signals. Moving averages suggest bearish sentiment across different time frames, except for the 200-period EMA and SMA, which indicate potential support and a chance for reversal in longer time frames.
In conclusion, despite the current downtrend, bitcoin could see a bullish reversal if it stabilizes around $63,500. Key indicators pointing towards positive sentiment, such as the 200-period EMA and SMA, suggest that long-term support may hold, offering potential gains if reversal patterns are confirmed with higher trading volumes. However, the dominant bearish trend across all time frames indicates continued downside risk without clear reversal patterns and increased volume to support a bullish case. Traders are advised to exercise caution and conduct thorough analysis before making any trading decisions.