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Is Bitcoin (BTC) Price Headed for a Sharp Downturn? Key Indicators Examined

3 mins
Updated by Ryan Boltman
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In Brief

  • Bitcoin rallied, achieving a notable 12.7% gain over seven days, reaching around $72,750 before retracing.
  • Key indicators suggest a near-term downturn, with bearish signals in the daily and 4-hour charts.
  • BTC's further trajectory depends on its ability to hold the $69,000 support level, with potential downside targets analyzed.
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The price of Bitcoin (BTC) reached a higher high recently but has not yet surpassed the all-time high (ATH) of around $73,800.

Over the past week, BTC saw an increase from approximately $64,500 to around $72,750 before experiencing a decline again yesterday.

Bitcoin Rallies: A Notable 12.7% Gain Over Seven Days

After reaching a local low at approximately $64,500, BTC experienced a significant rally, resulting in a price increase of around 12.7%. However, since yesterday, the BTC price has been retracing again, bringing it back to the golden ratio at around $68,850.

At this level, BTC may find support and potentially bounce upwards. Should the price break below this Fibonacci level in a bearish manner, the next significant Fibonacci supports are expected to be around $60,314 and $51,900.

Bitcoin price analysis BeInCrypto
Bitcoin Price Chart. Source: Tradingview

Additionally, in the daily chart, the MACD lines have crossed bearishly, and the MACD histogram has been decreasing in a bearish manner since yesterday. Meanwhile, the Relative Strength Index (RSI) is in neutral territory, indicating neither bullish nor bearish signals at the moment.

Bitcoin 4H Outlook: Indicators Suggest a Near-Term Downturn

In the 4-hour (4H) chart, Bitcoin’s price movement is bearish, with the MACD histogram trending downwards and the MACD lines crossing bearishly. Concurrently, the Relative Strength Index (RSI) oscillates in neutral territory, neither indicating strong bullish nor bearish sentiments.

Read More: What Happened at the Last Bitcoin Halving? Predictions for 2024

Crucially, BTC’s further development hinges on whether the golden ratio support level of around $69,000 can effectively act as a floor for price action. This level is a pivotal point, as a successful bounce off this support could signal renewed bullish momentum for BTC, potentially paving the way for further upward movement.

Bitcoin Price Analysis
Bitcoin Price Chart. Source: Tradingview

Conversely, a breach below this support level might lead to additional downside pressure, with the next significant support zones coming into play around $60,314 and $51,900.

Weekly Bitcoin Analysis: MACD Histogram Declines, Signaling Bearish Trend

In the weekly chart, Bitcoin’s price dynamics exhibit a mixed signal, with the histogram of the Moving Average Convergence Divergence (MACD) indicator starting to trend lower in a bearish manner since the previous week. Despite this, the MACD lines remain crossed in a bullish configuration.

Moreover, the RSI is currently situated in overbought regions, although it is approaching neutral territory. In the event of a moderate correction, BTC may find substantial Fibonacci support around the $51,800 level.

BTC/USD Price Chart
Bitcoin Price Chart. Source: Tradingview

A potential bounce from this support zone could signal a resumption of the upward trend for BTC as investors and traders assess the market sentiment and price action for indications of renewed bullish momentum.

Bitcoin’s Monthly Chart: Still No Signs of a Bearish Turn

The monthly chart shows that BTC price dynamics lack bearish signals per the indicators. Despite the RSI residing in slightly overbought territories, other metrics indicate a bullish bias.

The MACD histogram continues to trend upwards, indicating positive momentum, while the MACD lines maintain a bullish crossover configuration. This suggests ongoing strength in the market sentiment.

BTC/USD Price
Bitcoin Price Chart. Source: Tradingview

Overall, the bullish trajectory remains intact, contingent upon BTC sustaining its position above the critical golden ratio support level situated around $37,000. This support zone is a crucial determinant for the longevity of the prevailing upward trend in Bitcoin’s price movement.

Bitcoin’s Market Grip Strengthens Within Upward Parallel Channel

Bitcoin dominance is trending within a parallel upward channel, indicating its resilience in the market. The next noteworthy Fibonacci resistance level stands at approximately 60.5%.

Read More: Bitcoin Price Prediction 2024/2025/2030

BTC dominance finds substantial support zones at around 49% and 45%, delineating crucial levels where market sentiment may shift. Additionally, the MACD histogram in the weekly chart shows signs of bullish momentum, with a bullish uptick observed.

Bitcoin price analysis
Bitcoin Price Chart. Source: Tradingview

Furthermore, there is a potential impending bullish crossover of the MACD lines, signaling further strength in Bitcoin dominance. However, it’s noteworthy that the RSI is currently in neutral territory, posing a risk of establishing a bearish divergence if not closely monitored.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Ryan Boltman
Ryan Boltman is a managing editor at BeInCrypto, specializing in the crypto markets with a strong focus on technical and on-chain analysis across a broad spectrum of digital assets. His areas of expertise include Layer-1 and Layer-2 solutions, artificial intelligence (AI), real-world assets (RWA), decentralized finance (DeFi), decentralized physical infrastructure networks (DePIN), meme coins, and altcoins. Before his current role, Ryan contributed to Blockchain.com as a customer success...
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