Bitcoin Technical Analysis: BTC Bulls Challenge Upper Resistance Amid Bearish Pressure

As of May 3, 2024, bitcoin’s price stands at $59,142, with a 24-hour intraday range of $57,789 to $60,000. The leading cryptocurrency maintains a market capitalization of $1.15 trillion and has recorded a trading volume of $28.43 billion over the same period.

Bitcoin

Bitcoin’s daily chart analysis reveals a consistent bearish trend with BTC’s price tumbling from a high of $72,750 on April 7, to a support level of around $56,500 on April 30. Increased volume on downward price movements underscores the bearish momentum, suggesting that the market could see further declines if this support breaks. On the 4-hour chart, bitcoin shows resilience at the $56,500 support level, albeit with modest recovery attempts.

BTC/USD daily chart.

Despite minor bullish upticks, the absence of strong buying volumes hints at a potential lack of commitment among buyers to reverse the trend. The 1-hour chart offers an up-close look at intraday dynamics, showing a slight positive trajectory with prices rebounding from $57,062 to around $59,500. However, the mixed ups and downs indicate high volatility and trader indecision. For those engaging in short-term trading, tactical entry and exit around key support and resistance levels—like $57,000 and $59,500—could be advantageous, particularly if momentum indicators shift.

BTC/USD 4-hour chart.

Currently, oscillators present a mixed bag with the relative strength index (RSI) and Stochastic suggesting neutrality. Meanwhile, the Commodity Channel Index (CCI) and momentum oscillators indicate potential bullish opportunities. However, caution is advised as the moving average convergence/divergence (MACD) level suggests a bearish undertone, reflecting the prevailing negative sentiment seen in broader chart patterns.

A review of moving averages (MAs) paints a predominantly bearish picture, with most short to mid-term averages indicating negative sentiment. Notably, both the 200-day exponential and simple moving averages (EMA & SMA) signal a bullishness, providing a glimmer of hope for long-term traders that there might be a bottom forming at these levels.

Bull Verdict:

The current resilience observed at key support levels, coupled with positive signals from long-term moving averages and select oscillators, suggests that bitcoin may be poised for a rebound. If buyers can sustain increased volumes and push through resistance barriers, this could potentially ignite a bullish trend. Traders should watch for consistent bullish patterns and volume growth as indicators of strengthening momentum.

Bear Verdict:

Despite occasional signs of recovery, the prevailing bearish indicators across most time frames and technical charts signal potential further declines in BTC’s price. The significant volume accompanying downward movements, along with the predominance of sell signals in shorter-term MAs, indicates that the market may not have reached its bottom yet. Traders should remain cautious, considering safeguarding assets or planning strategic exits should the downward trends continue.

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