It has been a rough year for Bitcoin and most major altcoins. Over the last 24 hours, Bitcoin lost 1% of its value, which points towards consolidated price action. BTC has not made much progress over the past week either, as the coin only lost 1.6% of its market value.
For multiple weeks, the coin has been oscillating between $16,400 and $18,000. The closest support line for the coin stood at $16,000. The technical outlook for Bitcoin depicted mundane price action due to a decline in the buying strength on the one-day chart.
Since the price of Bitcoin has remained undecided for quite some time now, sellers have flooded the market, indicating that the coin is headed toward another round of depreciation. The trading volume of Bitcoin has declined considerably, reinforcing that bears were in charge of the asset’s price.
If the selling pressure keeps mounting, BTC will soon lose its crucial price level of $16,000. Currently, BTC is down 76% from its all-time high, secured in 2021.
Bitcoin Price Analysis: One-Day Chart
BTC was trading at $16,550 at the time of writing. Bitcoin was trading close to its immediate support level of $16,000. Going by the technical outlook, the coin might undergo further depreciation before it starts to reverse its price action.
Overhead resistance for Bitcoin was $16,900; clearing this could help the crypto reach $17,400 and eventually attempt 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 amount of Bitcoin traded in the last session declined, indicating a fall in buying strength for the asset.
Technical Analysis
BTC traders might again witness a fall in asset prices over the upcoming trading sessions. The Relative Strength Index (RSI) was below the half-line, near the 40-mark, which indicates that sellers outnumbered buyers heavily. RSI had also noted a downtick, signifying further loss of value.
Similarly, the BTC price was below the 20-Simple Moving Average (SMA) line, which signals that sellers were driving the price momentum in the market.
The SMA also formed a death cross; it is formed when a longer moving average line crosses over a shorter moving average line; in this case, the 50-SMA line was above the 20-SMA line. This sign on the chart is accompanied by the bears strengthening in the market.
Other technical indicators have also pointed out that sellers are here to stay a little longer. The Moving Average Convergence Divergence (MACD) indicates price momentum and reversals. MACD depicted a sell signal as the indicator noted red signal bars after undergoing a bearish crossover.
The sell signal could mean that the price would depreciate further. The Directional Movement Index, which portrays the price direction, was negative.
The -DI (orange) line was above the +DI (blue) line. The Average Directional Index (red) was near the 20-mark with an uptick, emphasizing that bearish action could gain momentum over the immediate trading sessions.
Featured Image From Unsplash, Charts From TradingView.com