BTC

Technical Analysis

Analyzing the recent 60-day chart data of Bitcoin (BTC), we have gained insights into the current market trends through various technical indicators and patterns. The price fluctuations over the past 60 days show a pronounced downward trend. Notably, the consistent decrease in Bitcoin’s trading volume over the last 30 days is an important signal.

Firstly, moving average analysis is necessary. A bearish crossover occurred when the 50-day moving average fell below the 200-day moving average. This crossover is interpreted as a sell signal, indicating a high likelihood of continuing the downward trend in the long term.

Secondly, the RSI (Relative Strength Index) is approaching an oversold state, falling below 30 and suggesting the possibility of further declines. While this state may seem like a buying opportunity, considering the overall market sentiment, it is essential to observe the current downward trend cautiously.

Thirdly, the MACD (Moving Average Convergence Divergence) clearly shows a downward trend. The MACD line is positioned below the signal line, indicating that selling pressure still exists.

Taken together, these various indicators all serve as confirmation of the current price decline. Therefore, it seems wise to sell any assets held in the short term.

External Factors Analysis

The recent changes in the Bitcoin market are influenced by several external factors. First, as the U.S. Federal Reserve continues to maintain a rate hike stance, investors are moving away from risk assets. When interest rates rise, the returns on investments in assets generally decrease, leading to an increased preference for safe assets.

Secondly, the growing global economic uncertainty has diminished the credibility of digital assets like Bitcoin. As reported by various foreign media, regulatory and policy changes by governments around the world are affecting the popularity of Bitcoin.

Thirdly, the recent recession in the technology sector, particularly the consecutive declines of large tech stocks, is negatively impacting the cryptocurrency market as well. This environment is dampening the overall investment sentiment towards Bitcoin.

Lastly, hacking incidents at large exchanges or potential legal issues are also significant factors affecting the market. These external factors tend to accelerate Bitcoin’s downward trend.