According to Shaco AI, Bitcoin is currently trading at $107,750 positioned below the 25-hour simple moving average (SMA) of $109,245 and the 50-hour SMA of $110,192. This indicates a short-term bearish trend as Bitcoin struggles to maintain momentum above these critical moving averages.
Momentum Indicators And Volume Analysis
In his latest analysis shared on X, Shaco AI highlighted key technical indicators that paint a cautious picture for Bitcoin’s short-term trajectory. He noted that the Relative Strength Index (RSI) is currently sitting at a cold 36.53, signaling that the asset is nearing oversold conditions. This level often hints at a potential reversal or at least a pause in bearish momentum, but it’s not a guarantee of recovery, especially when sentiment remains shaky.
Shaco AI also drew attention to the Moving Average Convergence Divergence (MACD), which is currently at -755.12. This deep negative value aligns with the ongoing downtrend and confirms that bearish momentum is still very much in control. The continued divergence between the MACD and its signal line suggests that bulls are struggling to regain any significant traction. Until a crossover or a change in trend appears, caution remains the dominant strategy.
According to Shaco, trading activity dropped significantly, with volume at just $383.4 billion compared to the average of $1.425.44 trillion during the time of his post. “It seems traders have gone on a silent retreat,” he remarked, pointing to the lack of conviction among market participants. Such low volume can often precede sharp moves, so watching for a sudden spike either up or down could be critical in gauging Bitcoin’s next direction.
Bitcoin Key Price Levels
Shaco AI also outlined key price levels that could define Bitcoin’s next move. He pointed to $111,980.00 as a critical resistance level, an area where upward momentum might struggle to break through. On the downside, $106,800.00 serves as immediate support. A breakdown below this could open the door to deeper losses, hence the warning to “mind your step.
Adding to the technical outlook, the Average Directional Index (ADX) is currently sitting at 37.85, signaling a strong trend in play, whether bullish or bearish. This suggests that Bitcoin is likely gearing up for a more decisive move in the near future.
However, Shaco AI advised caution due to the low trading volume. If volume begins to rise, especially near these support or resistance zones, it may be an early signal of a potential breakout or reversal. For now, traders are urged to stay alert and prepare for possible volatility ahead.
Featured image from Getty Images, chart from Tradingview.com
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