Bitcoin (BTC), the leading cryptocurrency by market capitalization, is experiencing renewed downward pressure as its price drops below the 1-day Simple Moving Average (SMA). This technical indicator, widely followed by traders to assess market trends, suggests a potential continuation of BTC's downward trajectory.

As Bitcoin aims for new lows, breaching the 1-day SMA reflects growing bearish sentiment and increased market volatility. Investors and analysts are closely observing these developments, as they may indicate further declines and pave the way for Bitcoin to test lower support levels.

With a market cap exceeding $1.3 trillion and a trading volume of over $25 billion at the time of writing, Bitcoin's price has decreased by 1.49%, trading around $66,133 over the past 24 hours. BTC's market cap and trading volume have also decreased by 1.52% and 4.84%, respectively.

Bitcoin Market Sentiment Turns Bearish

On the 4-hour chart, BTC appears bearish as it trades below the 100-day simple moving average. The chart suggests Bitcoin is making efforts to approach the $64,515 support level.

The composite trend oscillator on the 4-hour chart also indicates bearish momentum, with both the signal line and SMA of the indicator currently in the oversold zone. This suggests a prolonged bearish phase for the price.

A detailed analysis of BTC's price movement on the 1-day chart reveals consistent breaks below the 100-day SMA. Presently, the cryptocurrency seems to be attempting a short-term recovery before potentially resuming its decline.

Additionally, the formation of the 1-Day Composite Trend Oscillator signals an impending bearish move, with both the signal line and SMA of the indicator crossing downward towards the zero line.

Key Support Levels to Monitor

There are currently four crucial support levels to watch: $64,515, $60,158, $56,523, and $50,604. If Bitcoin continues on its bearish trajectory as anticipated, it will likely move downward towards the $64,515 support level. A breach below this level could lead BTC to test lower supports such as $60,158 and potentially lower levels.

Alternatively, if Bitcoin deviates from the expected downtrend and begins to ascend, it may target the $71,909 resistance level. Further upward movement could challenge the $73,811 resistance level and possibly establish new highs.