Bitcoin (BTCUSD) has been struggling to make significant gains in the past few sessions. The sentiment surrounding Bitcoin has deteriorated after facing multiple rejections at the 50-day simple moving average (SMA). This sideways movement has left investors uncertain about the future direction of BTCUSD.
The momentum indicators for BTCUSD are currently skewed to the downside. The recent selloff in August, following a disappointing July NFP report, has added to the bearish sentiment surrounding Bitcoin. The failure to break above the 50-day SMA has further reinforced the downside pressure on BTCUSD.
If BTCUSD breaks below the recent rangebound movement, immediate support levels could be tested. The April bottom of 56,483 is a key support level, followed by the July low of 53,250. A further downside could lead to the six-month low of 49,450, recorded in August. On the other hand, if bullish momentum takes over, BTCUSD could retest the recent rejection region of 61,850, close to the 50-day SMA. Breaking above this level could pave the way for a move towards the April hurdle of 67,270 and potentially the July peak of 70,015.
BTCUSD has been in a sideways trading pattern recently, but the death cross between the 50- and 200-day SMAs has added to the bearish outlook. To change this bearish sentiment, BTCUSD needs to break back above its 200-day SMA. The current sideways movement and downside momentum indicators suggest that Bitcoin’s price may face further pressure in the short term. Investors should closely monitor key support and resistance levels to gauge the potential future direction of BTCUSD.