Home / Blog / Category / Market Analysis / Technical overview – Bitcoin’s Four-Week Losing Streak Continues
9 July 2024 | FXGT.com

Technical overview – Bitcoin’s Four-Week Losing Streak Continues

Recent Performance: Bitcoin has seen substantial declines, falling 10% over the past week and 20% over the past month, extending its losing streak to four consecutive weeks. Over the weekend, the price rebounded by 9%, briefly reaching $58,500 on Sunday, offering some relief to investors and hinting at potential stabilization. However, sentiment remains bearish as long as the price stays below $60,000.

Key Factors Influencing the Market: Strong selling pressure has been driven by the German government selling thousands of BTC and Mt. Gox returning Bitcoin and Bitcoin Cash to creditors, with 140,000 BTC worth $9 billion set for distribution, sparking fears of increased selling pressure.

Bearish Sentiment and Key Indicators: The drop below the $60,000 support level has shifted sentiment to bearish, with long-term perspectives turning negative. BTC is trading around $57,000, below the 200-day moving average channel, a key bull market indicator whose breach typically signals an end to the bull run. Despite intraday recoveries, BTC has now closed below the 200-day EMA channel for two consecutive days, signaling ongoing weakness.

Critical Levels and Potential Recovery: Recent price action has established support at $54,000 and resistance at $58,500. Breaking below $54,000 will confirm the continuation of the bearish trend, while a break above $58,500 could restore some bullish momentum. Despite potential positive divergence on the daily RSI, no clear signs of a bottom are evident yet, although this divergence signal could become more prominent with a confirmed reversal pattern breaking above $58,500.

Upcoming Events: Several key events could influence Bitcoin’s market sentiment in the near future, including the U.S. inflation report, Fed Chair Powell’s testimony before Congress, and the anticipated approval of spot Ether ETFs, all of which could impact market conditions and investor sentiment.

Help us improve this article.
Disclaimer: Any material and information included herein are intended for general marketing purposes only and does not constitute investment advice or recommendation nor an invitation to acquire any financial instrument and/or be involved in any financial transaction. The investor is solely responsible for the risk of his investment decisions and if considers appropriate, he should seek relevant independent professional advice before making any decision. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. Please read full Non-Independent Investment Research Disclaimer here. Risk Disclosure: CFDs are complex instruments and carry a high level of risk of losing money. Read full Risk Disclosure here .

Blog Search


Blog Categories


Blog Tags

Register and Share Buttons EN


Loved our latest article?

Share it with your friends and followers!

Copied to clipboard
To top

Leveraged products may not be suitable for everyone and may result in loss of all your capital. Please ensure you fully understand the risks involved and whether trading is appropriate for you. Read Full Risk Disclosure here.