BTCUSD has experienced a significant shift in market sentiment as it has been trading sideways in the past few sessions. The recent rejection at the 50-day SMA has further deteriorated the already bearish short-term picture for Bitcoin. This has raised concerns among investors and traders, leading to a decrease in bullish actions.
Technical Indicators Showing Downside
The momentum indicators for BTCUSD are currently skewed to the downside, indicating a potential further decline in price. The death cross between the 50- and 200-day SMAs has added to the negative outlook for Bitcoin. This technical signal has contributed to the lack of bullish momentum in the market, making it harder for the price to recover.
Support and Resistance Levels
Immediate support for BTCUSD could be found at the April bottom of 56,483, with a violation of that territory potentially paving the way for the July low of 53,250. Furthermore, the six-month low of 49,450, registered in August, could act as a strong downside protection level. On the other hand, bullish actions may push the price to test the recent rejection region of 61,850, which is close to the 50-day SMA. Breaking through this level could open up a pathway towards the April hurdle of 67,270, followed by the July peak of 70,015.
BTCUSD is facing a challenging period as it struggles to break out of the current sideways trend. The technical indicators and market sentiment point towards a further downside in price, with key support levels being tested. To reverse the bearish short-term outlook, Bitcoin would need to surpass its 200-day SMA. Until then, investors and traders should proceed with caution and closely monitor the price movements of BTCUSD.