Cryptocurrency Bitcoin seems to be facing another downward trend. Over the past week, the price has been gradually decreasing and most analysts predict it to drop further. Although the momentum of the decline is lower than anticipated, market analysis indicates a few support levels that can help the market stabilize. Daily price analysis reveals that BTC has been going lower since it was rejected by the resistance level of $30,000 some time ago in April. Going even further, it has dropped below the 50-day moving-average of $29,000. Candlestick shapes point to a possible bullish reversal to the moving-average in the near future.

The bearish market structure on the 4-hour timeframe is clarified as BTC falls below the minor support level of $27,500 and is predetermined to retest $25,000 shortly. In spite of that, the Relative Strength Index (RSI) is heading upwards towards the oversold area which gives us a signal of an expected revision to the $27,500 resistance.

It is worth noting that activity on the Bitcoin network has been at an all-time high recently with 682,000 daily transactions beating the 250,000 from the start of 2023. The rise of decentralized finance platforms and projects is likely to be the root cause of this increase.

Nevertheless, the growing network activity has led to increased transaction fees and potential volatility in the market which makes trading in the BTC market risky. Everyone is feeling the effects of this situation, from everyday users to miners. Due to that, one should be extra careful in those circumstances.



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