Bitcoin’s price has dipped below $60,000, raising alarms among investors. Analysts predict further losses as technical indicators suggest a bearish trend.
Concerning Technical Indicators
Bearish Signals
Crypto trading expert Alan Santana highlighted in an August 4 TradingView post that Bitcoin might fall further before any significant growth. A major concern is the bearish divergence on Bitcoin’s weekly Relative Strength Index (RSI). Despite higher prices in 2024 compared to 2021, the RSI has shown lower highs, indicating weakened upward momentum.
Weekly RSI Trends
Bitcoin’s weekly RSI is trending downwards, with a current reading of 50.6. This trend indicates a potential long-term bearish shift, the first since August 2023. Such a shift, especially after a major high, typically signals a prolonged downturn.
Critical Levels to Watch
Descending Triangle Pattern
Bitcoin’s price is forming a descending triangle pattern, a bearish signal that often leads to further declines. Key support levels include the 0.618 Fibonacci retracement level around $37,795 and the 200-week moving average.
Decreasing Volume
The decreasing volume on upward price movements suggests weakening buying interest, adding to the bearish outlook. Analyst Rekt Capital also noted that the current RSI readings could dictate the extent of Bitcoin’s downside.
Impact of U.S. Economic Signs
Economic Concerns
Bitcoin’s decline is also influenced by troubling signs in the U.S. economy. Investors are watching the Federal Reserve’s strategies to rescue the economy, which will likely impact Bitcoin’s trajectory.
Bitcoin Price Analysis
Current Price
As of now, Bitcoin is trading at $60,868, down 1.5% in the last 24 hours and over 10% on the weekly timeframe. The ability of bulls to sustain the price above the $60,000 support will be crucial to preventing further losses.
