The value of Bitcoin (BTC) dropped below $67,000, hitting a low of $65,700 in a recent decline that erased its gains from the previous day. As of the latest update, Bitcoin is valued at $66,972.95, showing a 1.22% decrease over the past 24 hours and a 2.01% drop over the last week.
Despite this short-term setback, Bitcoin’s market capitalization remains at $1.32 trillion, and there are currently 20 million BTC in circulation. Over the past day, the trading volume reached $46.32 billion, indicating sustained interest from traders.
Bitcoin has been following a distinct descending pattern, characterized by a sequence of decreasing highs and lows, signaling a bearish trajectory.
The upper limit of this pattern, located around $69,000, has consistently served as a formidable barrier, causing prices to retreat each time an attempt is made to surpass it.
Recent rejections have shown patterns reminiscent of previous instances, emphasizing the significance of this resistance level in hindering further upward movement.
Levels of Support and Resistance
At present, Bitcoin’s upper resistance zone is situated between $67,583.25 and $69,000, forming a range that consistently thwarts bullish advancements.
A successful breach of this zone could set the stage for Bitcoin to push towards $70,000 and beyond.
However, failure to surpass this critical level might result in a downward correction back into the descending pattern.
Immediate support is noted near $66,423.76, a key level marked on the charts. A breach of this support could precipitate a decline towards the lower end of the pattern, estimated between $60,000 and $62,000.
Analysis of RSI and MACD Indicators
As per the latest data, the Relative Strength Index (RSI) stands at 56.75, positioned below its signal line at 63.00, indicating a weakening bullish momentum and an approaching neutrality zone.
Earlier in October, the RSI had climbed above 70, suggesting overbought conditions. The subsequent decline signaled a corrective phase, but the current RSI level leaves room for potential upward movement.
Sustaining above the 50 threshold is crucial for maintaining bullish momentum.
The Moving Average Convergence Divergence (MACD) indicator shows the MACD line above the signal line, indicating a continuing bullish trend. However, the diminishing histogram bars indicate a decrease in momentum.
A potential crossover where the MACD line moves below the signal line could signal a short-term downturn or consolidation phase.
Analysis of On-chain Activity
Insights from IntoTheBlock data reveal a 5.20% increase in active Bitcoin addresses over the past week, suggesting heightened user participation.
This contrasts with a 6.50% drop in new addresses, indicating that existing users are the primary drivers of network activity.
Bitcoin’s 7-day average transaction volume currently stands at 539.81k BTC, with a recent peak of 672.53k BTC on October 22nd and a low of 371.37k BTC on October 20th.
The fluctuating transaction volumes indicate changing market dynamics, with the recent surge hinting at increased activity.
The varying volume of transactions suggests evolving trading behaviors that could influence Bitcoin’s price trends in the upcoming days.