Bitcoin’s price continues to seesaw in the days leading up to the Federal Reserve’s policy meeting. The world’s most popular cryptocurrency dipped as low as $60,760 on Wednesday but has since rebounded above $63,500. This volatility reflects ongoing uncertainty in the market.
Looking at shorter timeframes, a one-hour chart suggests a downtrend, with lower highs and lows indicating short-term pessimism. While trading volume remains steady, there haven’t been any major spikes, suggesting cautious selling rather than a panicked sell-off. Zooming out to the four-hour chart, the downtrend becomes clearer, with a significant price drop on March 19th highlighting strong selling pressure.
Despite some minor price bounces, the lack of significant trading volume during these rises casts doubt on their sustainability.
A daily chart reveals a longer-term bearish trend, but the most recent uptick might hint at a potential reversal. Technical indicators like the RSI and Stochastic are neutral, reflecting a balanced market with equal buying and selling pressure. However, the MACD indicator leans bearish, adding complexity to the picture.
Previous Article: Bitcoin Spot ETFs Fuel Record Crypto Fund Inflows of $2.45 Billion
Moving averages (MAs) provide a broader view. Shorter-term MAs (10-day and 20-day) reflect the recent price dips and suggest a bearish market. However, longer-term MAs show a gradual shift upwards, indicating underlying strength and potential for future growth.
Despite the current downtrend, the longer-term MAs hint at a potential future upswing as market sentiment evolves. This, coupled with the recent rebound and a bullish signal from the momentum oscillator, creates a sense of cautious optimism.
However, the short-term downtrend and bearish signals from other indicators like the MACD urge caution. The consistent selling pressure and lack of strong buying volume during potential reversals suggest the market may not be ready for a full turnaround.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Bitcoin and the cryptocurrency market are highly volatile and carry significant risk. Before making any investment decisions, it is essential to conduct your own research and consult with a qualified financial advisor.
