Bitcoin (BTC), the world’s leading cryptocurrency, has recently seen a pullback, with its price heading towards the $66,736 level. This decline follows a period of significant bullish activity that previously pushed the price of BTC above this mark. As the price of the crypto asset approaches this critical level, the key question is whether the bulls can to recover strength and drive BTC back to an upward trajectory.
In this analysis, we will examine the recent price movement of Bitcoin with the help of technical indicators and explore the possibility of a bullish recovery towards the $66,736 mark.
With a market cap of over $1.3 trillion and a trading volume of over $29 billion, BTC’s price is up 0.62% to around $67,238 at the time of writing. The previous day saw BTC’s market cap increase by 0.68% and its trading volume by 64.24%.
BTC Price Action and Technical Indicators: What Are They Signaling?
Currently, on the 4-hour chart, Bitcoin has formed two bearish momentum candlesticks, moving towards the $66,736 level. Although BTC is still trading above the 100-day simple moving average (SMA), the price could drop to the $66,736 mark before starting to rise again.
Furthermore, the 4-hour composite trend oscillator indicates that BTC price may maintain its bearish trajectory towards the $66,736 mark as the signal line has crossed below the indicator’s SMA and both lines are currently trying to break out of the overbought zone.
On the 1-day chart, after successfully breaking above the $66,736 resistance level, Bitcoin is attempting a retest with a bearish move back to this level. It is also notable that since rising above the 100-day SMA, the crypto asset has maintained strong bullish momentum, suggesting that this current pullback could stall at the $66,736 mark.
![Bitcoin Price Retraces to $66,736: Can Bulls Stage a Recovery? 1 Bitcoin](https://thegurumedia.com/wp-content/uploads/2024/07/WhatsApp-Image-2024-07-22-at-10.12.34-AM.jpeg)
Finally, the 1-day composite trend oscillator indicates that BTC price remains bullish as both the signal line and the indicator’s SMA are attempting to climb above the zero line. BTC is also trading above the 1-day SMA, and based on these indicators, it can be suggested that the current pullback may be short-term.
Potential Scenarios: Bullish Recovery or Further Bitcoin Decline?
Based on current price action and technical indicators, Bitcoin price could drop to the $66,736 mark. If Bitcoin Price If the price falls to this level and then recovers, it will start to rise towards the resistance level of $71,909. Should the price break above this resistance, it could continue to rise, testing the level of $73,811 and potentially moving on to create a new all-time high.
However, if BTC price drops to the $66,736 mark and closes below, it will continue to fall towards the $64,616 support level. Once Bitcoin breaks below this level, it will drop further to test the $60,152 support range and possibly other lower levels.
Featured image from iStock, chart from Tradingview.com