Bearish signals: Is Bitcoin headed for a major price downturn?

Bitcoin (BTC) has maintained its high price increase as of April 26, 2024, ranging from $64,923 to $74,000. However, traders have become alarmed due to mixed signals shown on the charts, showing that the bullish phase may come to an end soon and the price could experience a downturn, ushering in a bearish era. Here are some bearish signals observed by traders.

Bitcoin’s bull run recently

The Bitcoin (BTC) market bull has recently reached an all-time high price of nearly $74,000, surpassing historical data. This surge represents a big increase compared to BTC’s previous record in November 2021, which was below $68,790. Despite the crypto market being declared ‘dead’ for the 150th time, as stated by Swan’s CEO Cory Klippsten, he also mentioned BTC continues to win people over. 

Investors’ enthusiasm is one of the main drivers behind Bitcoin’s recent price surge towards a new financial product linked to BTC. However, the crypto market remains volatile, and traders need to exercise caution when using their BTC in casino crypto. This is because some traders are now observing signs of a possible significant price downturn in the near future.

Tenkan Sen crossing below the Kijun Sen

Crypto trader Josh Olszewicz has noticed a crossover between Tenkan Sen and Kijun Sen on the Bitcoin daily chart. The Tenkan Sen shows the level of potential buying interest and acts as a short-term resistance during downward movements. 

On the other hand, the Kijun Sen serves as a medium-term support level. When the Tenkan Sen crosses below the Kijun Sen, it’s typically seen as a bearish signal, suggesting that the market is under downward pressure.

Stochastic and commodity channel index (CCI)

The Stochastic Oscillator and Commodity Channel Index (CCI) indicate unstable momentum for BTC. The chart shows a neutral stance, with the relative strength index (RSI) at 46, similar to other momentum indicators.

Moving averages (MAs)

Bearish signals are observed in the Moving Averages (MAs) on short-term periods, such as the 10, 20, 30, and 50-day averages. A red candlestick is also visible from the TD (Tom Demark) Sequential indicator, along with a death cross formation between the 50 and 100 Simple Moving Average (SMA). These factors could initiate a price decline, with a projected range of $63,300 to $59,000.

4-hour analysis of persistent downtrend

A persistent downtrend with unclear momentum was observed during a 4-hour chart analysis on April 26, 2024. The analysis revealed a pattern of lower highs and lower lows, which is a major bearish indicator. The daily chart further confirms this trend, highlighting strong resistance at the $72,000 level, which Bitcoin (BTC) has been struggling to surpass.

Bitcoin in the long-term

While the current trend appears bullish and approaching a resistance level, it is important not to overlook the persistent bearish signals. Traders should closely monitor the charts to protect their digital assets and exercise caution when using casino crypto platforms. 

Despite the ongoing bullish trend in BTC, it is crucial to remember that the momentum remains uncertain as of the moment, looking at the hourly and daily chart analysis. Traders should be prepared for a potential price downturn in the near future.