On the 1-hour chart, bitcoin’s (BTC) downward trajectory is clear, as the price dropped from a peak of $63,455 to recent lows near $62,039. The pattern of lower highs and lower lows signals that sellers have been in charge, even though brief bullish moves have appeared along the way. Despite these short-lived rallies, overall sentiment remains tilted toward the negative.
Examining support and resistance levels offers more clues. The price is hovering around $62,500, which could serve as a short-term support zone. If bitcoin falls below this mark, the next major support could be in the $62,000 to $61,500 range.
BTC/USD 1-hour chart on Sunday, Oct. 13, 2024.
Market momentum, as measured by oscillators, presents a variety of signals, most of which are neutral, though there are a few notable exceptions. The relative strength index (RSI) sits at 50, indicating that the market is neither overbought nor oversold at this point.
BTC/USD daily chart on Sunday, Oct. 13, 2024.
Other indicators, such as the commodity channel index (CCI) and Stochastic, also provide neutral readings, suggesting that bitcoin is in a consolidation phase without a clear directional push.
Amid this neutrality, some indicators are offering conflicting messages. The momentum indicator has moved into bullish territory, which could imply that the selling pressure is easing, potentially opening the door to a buying opportunity.
Conversely, the moving average convergence divergence (MACD) remains negative, issuing a sell signal that points to continued bearish momentum in the near term. In addition, volume spikes during price drops suggest that sellers still dominate the market despite the mixed signals from oscillators. At press time, BTC is exchanging hands for $62,437 per coin.
In summary, bitcoin is delivering a blend of signals as of Sunday afternoon. Traders should proceed with caution, keeping a close watch on critical support levels while staying alert for signs of either a reversal or a further breakdown. With short-term volatility likely, bitcoin’s next big move will depend on whether bullish buyers can seize control or if the bears continue to push prices downward.
