Bitcoin
Bitcoin Rejection at $62,498 Signals Bearish Dominance, Here Are the Possible Outcomes
Ljubljana, Slovenia – May 12 Bitcoin gold cryptocurrency trading chart on smartphone close-up.
Bitcoin recently faced significant rejection at $62,498 resistance level, highlighting the prevailing bearish dominance in the market. This inability to surpass a critical threshold highlights the strength of the selling pressure and raises concerns about potential downward trends.
Rejection at this key level signals caution among traders and investors, leading to a reevaluation of market strategies. As bearish momentum persists, this analysis explores the possible outcomes for Bitcoin’s price movement and the broader implications for the cryptocurrency market.
At the time of writing, Bitcoin’s market capitalization is over $1.2 trillion, with a trading volume of over $27 billion. The cryptocurrency’s price is currently up 1.2%, trading at around $61,582. Despite a 31.26% increase in market capitalization, there was a 35.43% decrease in trading volume over the last day.
Technical indicators: signs of continued bearish pressure
BTC Price on the 4-hour chart it is still actively bearish and trading below the 100-day Simple Moving Average (SMA). Currently, Bitcoin is attempting a downward move after a rejection at $62,498, which is represented by a blue line on the chart.
The 4-hour William Alligator formation signals that BTC price may extend its downtrend as there is no successful crossover of the Alligator Lip and Tooth above the Alligator Jaw.
On the 1-day chart, it can be observed that the Bitcoin price is dropping massively after being rejected for the second time at the $62,498 level, thus signaling further bearishness even as it continues to trade below the 100-day SMA.
Furthermore, the 1-day Alligator William also indicates further bearishness for BTC. After a successful crossing of the alligator’s lip and the teeth below the alligator’s jaw, they have maintained a good distance from each other.
It should be noted that the price of the crypto asset, from a general point of view, is actively pessimistic. Given the formation of price action and indicators on both the 4-hour and 1-day charts, it can be seen that the bears currently dominate the market.
Potential Scenarios: What’s Next for Bitcoin?
An analysis of possible future scenarios for BTC price movement after rejection reveals that if Bitcoin continues to move lower and breaks below the $60,152 support level, it could move lower to test the $60,152 support level. support at $58,523 and likely move to test other lower levels if the price breaks this level.
However, if there is a rejection at the $60,152 support level, Bitcoin could start rising towards the $64,515 resistance level. If this level is breached, the crypto asset could experience further price growth towards the $71,909 resistance level and possibly other levels above.
Featured image from iStock, chart from Tradingview.com