Bitcoin is facing resistance from the descending triangle trend line. It is a major technical pattern that traders often use. Despite this, it is still trading above the horizontal demand zone within the triangle.
Bitcoin is facing trend line resistance
Ichimoku cloud indicates downward pressure on Bitcoin. Another technical signal, called the Ichimoku Cloud, indicates downward pressure in the market. However, on the positive side, the 200-day moving average which is an indicator of long-term momentum is holding ground. This support shows that although there is selling pressure, there is also a level where buyers can enter and accumulate Bitcoin.
Currently, Bitcoin price is $67,886.00, down -0.81% in the last 24 hours. This decline in the Bitcoin price indicates that there are short-term issues with the digital currency and that market sentiment is currently bearish. In terms of greed and fear, Bitcoin is currently in the greed zone at 68. This means that there is good demand for Bitcoin.
Traders are eyeing the demand zone as Bitcoin faces a potential decline.
The formation of a descending triangle in conjunction with the bearish signal of the Ichimoku Cloud indicates that the price of Bitcoin could continue to decline. However, backing up to the 200-day moving average can help avoid a deeper decline. The demand zone is something that traders and investors will be keen to monitor if Bitcoin is to stay above this level or fall further.
Finally, this situation requires a higher awareness of technical analysis and trend indicators for investors involved in cryptocurrency markets. As such, traders' feelings and emotions can be managed in a better way when using the Ichimoku Cloud and other moving averages. According to TRUDERSUP, these perceptions of the current market should make individuals aspiring to invest in Bitcoin prepared for the volatility that comes with Bitcoin and which may change at any time.
On another level affecting the market, the US Securities and Exchange Commission (SEC) approved the trading of ETFs on the Ethereum Spot Exchange, with trading starting on the New York and CBOE stock exchanges on Tuesday. It is the second largest cryptocurrency asset that traditional investors now have access to via the exchange-traded fund market. This also paves the way for Solana ETFs with VanEck and 21Shares already placing their applications.
Technical forecast for the Bitcoin pair against the dollar:
Leading cryptocurrency BTC/USD has now advanced to trade a few levels above the 100 hour moving average line. Last Friday's rise pushed the price of Bitcoin close to the overbought levels of the 14-hour Relative Strength Index. In the near term, and according to the performance on the hourly chart, the BTC/USD pair is trading within an ascending channel formation. The 14-hour RSI also edged closer to overbought levels, supporting a short-term bullish bias. Therefore, bulls will target extended gains at around $67,880 or higher at the $69,098 resistance. On the other hand, bears will look to pounce on pullbacks at around $66,366 or lower at the $65,490 support.
In the long term, and according to the performance on the daily chart, BTC/USD is also trading within an ascending channel formation. The 14-day RSI continues to support a bullish bias as it approaches overbought levels. Therefore, bulls will look to ride the current rally towards $69,991 or higher to the $72,193 resistance. On the other hand, bears will look to pounce on profits at around $64,687 or lower at $62,385.
