Bitcoin price remains stagnant Can it expect a rebound?

[ad_1]

It’s been a tough year for Bitcoin and most major altcoins. Over the past 24 hours, Bitcoin has lost 1% of its value, indicating consolidated price action. BTC hasn’t made much progress over the past week either, as the coin has only lost 1.6% of its market value.

For several weeks, the coin has been hovering between $16,400 and $18,000. The closest support line for the coin was $16,000. Bitcoin’s technical outlook depicted an unremarkable price action due to a decline in buying strength on the 1-day chart.

Since the price of Bitcoin has remained undecided for some time now, sellers have flooded the market, indicating that the coin is heading for another wave of depreciation. Bitcoin’s trading volume declined significantly, reinforcing the fact that the bears were in charge of the asset’s price.

If the selling pressure continues to mount, BTC will soon lose its crucial $16,000 price level. Currently, BTC is down 76% from its all-time high, reached in 2021.

Bitcoin Price Analysis: One-Day Chart Bitcoin price was $16,550 on the one-day chart | Source: BTCUSD on TradingView

BTC was trading at $16,550 at the time of writing. Bitcoin was trading near its immediate support level of $16,000. According to the technical outlook, the coin could experience further depreciation before it begins to reverse its price action.

The overhead resistance for Bitcoin was at $16,900; Clearing this could help the crypto reach $17,400 and possibly attempt to break through $18,000.

On the other hand, if Bitcoin goes below the current price, it will fall to $16,000 and rise above $15,800. The amount of Bitcoin traded in the last session has decreased, indicating a decline in the buying strength of the asset.

Technical Analysis Bitcoin was in the seller’s dominance region on the 1-day chart | Source: BTCUSD on TradingView

BTC traders may see asset prices drop again in the coming trading sessions. The Relative Strength Index (RSI) was below the half line, near the 40 mark, indicating that sellers far outnumbered buyers. RSI had also noted a decline, signifying further loss in value.

Similarly, the price of BTC was below the 20-Simple Moving Average (SMA) line, indicating that sellers were driving the price momentum in the market.

The SMA also formed a death cross; it forms when a longer moving average line crosses 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 strengthening bears in the market.

Bitcoin posted a sell signal on the daily chart | Source: BTCUSD on TradingView

Other technical indicators also pointed out that the sellers are here to stay for a bit longer. Moving Average Convergence Divergence (MACD) indicates price momentum and reversals. MACD represented 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 describes 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 a slight uptick, underscoring that bearish action may gain momentum in the immediate trading sessions.

Featured image from Unsplash, charts from TradingView.com

[ad_2]