Bitcoin (BTCUSD) has been struggling to gain momentum in recent sessions, with sentiment deteriorating after facing multiple rejections at the 50-day SMA. The cryptocurrency experienced a significant selloff in August, following a disappointing July Non-Farm Payrolls (NFP) report. Unlike traditional stocks, Bitcoin has been unable to recover substantial ground, as the 50-day SMA has consistently acted as a barrier to any upward movement.
Key Levels to Watch
Should the current rangebound trading pattern break to the downside, immediate support levels are likely to be tested. The April bottom of 56,483 presents the first significant support level, followed by the July low of 53,250. If selling pressure continues, the six-month low of 49,450, recorded in August, could offer additional downside protection. On the upside, a bullish breakout could lead Bitcoin to challenge the recent rejection area around 61,850, in close proximity to the 50-day SMA. If this resistance is breached, the next hurdle lies at the April resistance level of 67,270, with further resistance near the July peak of 70,015.
Momentum Indicators and Moving Averages
Despite trading sideways in recent sessions, BTCUSD’s short-term outlook remains bearish, accentuated by the death cross between the 50-day and 200-day SMAs. This crossover has further dampened sentiment, signaling a potential downturn in the near future. To reverse this bearish trend, Bitcoin’s price would need to reclaim the 200-day SMA and demonstrate sustained upward momentum.
Bitcoin continues to trade within a narrow range, with a bearish bias prevailing in the short term. The cryptocurrency faces several key levels of support and resistance, which will likely dictate its near-term price action. Traders and investors should closely monitor BTCUSD’s behavior around these levels to gauge its future direction.