U.Today – Bitcoin’s current price, which is hovering near $63,000, is approaching a critical level that could signal a lower high in the current downtrend. If Bitcoin fails to break above the key resistance, the formation of this lower high is often interpreted as an early warning sign of a potential price reversal, indicating that a significant drop may be imminent.
Although there has been a recent rally, the trend is still showing signs of weakness. Bitcoin is facing multiple technical hurdles, with the $64,000 mark serving as a crucial boundary. The bearish pattern may be refuted and further upside is possible if Bitcoin manages to break above $64,000.
Unfortunately, the death cross that appeared on Bitcoin practically destroys the first cryptocurrency’s chances of achieving a solid bullish rally. Overall, this bearish signal is still active and suggests further decline. Bitcoin must break the downtrend by rising above $64,000 and setting a higher high to negate the death cross and bearish momentum.
Bitcoin’s trading volume has been increasing, which is encouraging for the coin’s short-term momentum from a technical perspective. Still, RSI (relative strength index) readings point to the asset possibly approaching overbought territory, raising the possibility of a pullback if buyers are unable to hold on to the asset.
In short, we are at a turning point for Bitcoin. Failure to break above $64,000 could validate a lower high, indicating further downside risk. Conversely, a break above this level could trigger a shift in market sentiment and give bulls a chance to get back on track.
This article was originally published on U.Today
