Bitcoin Struggles Below Key Levels, Investors Bearish About Future
Bitcoin continues to face challenges as it struggles to surpass crucial price levels, leaving investors increasingly pessimistic about its future. Currently, the cryptocurrency is unable to overcome the 50 and 200-day exponential moving averages, indicating a lack of positive momentum.
Investors are exhibiting bearish sentiments towards Bitcoin, prompting a cautious approach to the volatile cryptocurrency. At present, the BTC price is below key Exponential Moving Averages (EMA) and Moving Averages (MA) levels, with the value hovering around $26,077.
Bitcoin’s market capitalization stands at approximately $506.724 billion, with a fully diluted market cap of $546.714 billion and a circulating supply of 19.465 million. However, technical indicators highlight significant selling pressure while oscillators and moving averages further reinforce the bearish dominance in the market.
BTC has experienced a setback after a strong performance earlier this year, where it delivered impressive returns of 57.50%. In contrast, the returns over the past six months have been 7.63%.
The decline in Bitcoin’s value and volume is also evident. On August 15, 2023, the volume reached $13.83 billion with a price of $29,437.30. However, by August 20, 2023, the volume plummeted to $11.23 billion with a price of $26,110.
Bitcoin Futures Open Interest (USD) has also witnessed a sudden decline. On August 16, 2023, the open interest was recorded at $14.12 billion, but it dropped to $11.23 billion by August 22, 2023, along with a price of $26,110.
The current technical analysis indicates that Bitcoin is trading below the 50 and 200-day exponential moving averages, signifying a robust bearish momentum. If there is an increase in selling volume, the price may find support at lower highs and lows.
With the present Relative Strength Index (RSI) at 20.70 points, Bitcoin is firmly in bearish territory. The 14-day Simple Moving Average (SMA) is 35.70 points below the median line, further validating the bearish outlook. Additionally, the Moving Average Convergence Divergence (MACD) line at -897 and the signal line at -571 are both below zero, signaling increased bearishness for Bitcoin.
SpaceX’s recent news of selling its BTC holdings has added further downward pressure on Bitcoin. Technical oscillators, such as the MACD, RSI, and EMA, all provide negative signals, implying that the downtrend may persist. The price action of Bitcoin reflects the bearish sentiment among investors and traders on the one-day time frame.
Please note that the analysis provided in this article is for informational and educational purposes only and should not be considered financial, investment, or trading advice. Cryptocurrency investments carry inherent risks, and individuals should assess their own situation and risk tolerance before making any investment decisions.
