As we head into the week, the price of Bitcoin (BTC) seems to be stuck in a winter slumber. Since the end of October, the price of BTC has seen a 50% drop from its peak, with a bearish trend that has been in place since that time. Ever since the start of 2018, the BTC price has been hampered by the price of Bitcoin Cash (BCH), which has been losing value against BTC as well. This has led to the price of BCH falling to less than 50% of BTC’s price, while BTC has gone as low as $31,000, before rising again.
The market has been extremely volatile of late, with a string of big price movements through the key support levels needed to push the price back to its target, and then some. The overall sentiment has been one of optimism, despite the recent gyrations. This is the best time of year to start looking for a bargain, since there is a certain amount of decadence surrounding the holidays, and people are less likely to pick up and move the markets.
A bull run is almost always preceded by a “winter” period where the price activity starts to slow down and the risk of over-extension becomes greater. That has certainly been the case in the last few months for bitcoin as the “winter” has extended to almost six months now. This week’s price action has continued the trend, as the price has fallen from $37,000 to $31,000 over the past week.Summary of the situation
- Analysis of the bitcoin price shows that the bulls are losing momentum as the price drops to $35,100.
- The current stagnation will soon turn into a new downward trend.
- Long-term HODLs are cumulative according to chain data.
- BTC/USD is trying to break through the $36,000 barrier to find resistance at $38,700.
Cryptocurrency Heatmap from Coin360 Once again, investors and traders in bitcoin face a day of decline as the price fails to break through the $36,000 mark. The downward pressure on the bulls is increasing as they seek more liquidity and volume to drive BTC higher. Signals from the US Federal Reserve to raise interest rates have also increased volatility in the market, which has increased the pressure to sell BTC. BTC has been stuck in a tight range for the last two weeks, with an upper limit at $39,500. News of a rate hike by the Federal Reserve is another blow to the pair, which is already under heavy selling pressure. In addition, a likely rise in the US dollar will also lower the price of BTC. So what does this mean for the future of bitcoin? Analysis of the bitcoin price shows that BTC has managed to ignore such news in the past with minimal reaction. Still, bitcoin’s reputation as a safe haven means it is likely to react neutrally to a mildly bearish tone if the Fed rushes to raise interest rates.
Bitcoin price movement in the last 24 hours: Stagnation is postponed
The daily chart of BTC/USD shows the continuation of the stagnation phase. There is also a hint of accumulation on the charts with a reversal support point near the $32,000 level. An upward movement requires large volumes and liquidity on the upside. Analysis of the bitcoin price shows that bulls are facing serious resistance near the $42,000 price level, where the probability of a bearish reversal remains high. An incipient bearish candlestick engulfment pattern could further strengthen the bearish view over the next 48 hours. The 200-day exponential moving average shows a strong pivot point that holds the pair. A drop below $32,000 would erase the current pivot points and create a long-term negative trend on the charts. The Stochastic RSI indicator shows a reading of D-65, which corresponds to a sell signal for the BTC/USD pair. Over the past 24 hours, the Relative Strength Index indicator has held near the 40-zone with a negative bias, as seen in the bitcoin price analysis. According to bitcoin price analysis, the volume data cannot fall below the 20-day moving average at the 4620K level. So if a bearish rally begins, the immediate short-term target is $32,500, which could accelerate to $30,000, where massive walls of bulls will prevent any sharp decline.
4-hour chart BTC/USD – No change in bearish outlook in the short term
bitcoin price chart from TradingView The cryptocurrency market has been bombarded by a number of negative news stories, and it remains to be seen how the market will respond to these discussions. First, the Federal Reserve has hinted that it may raise interest rates by 2023. News that Chinese authorities are shutting down BTC mining companies has also not gone down well with cryptocurrency investors. The saga of the ill-fated TITAN, with the huge losses of billionaire Mark Cuban, also continues. The Cryptocurrency Fear & Greed Index currently stands at 25, reflecting the high level of fear that exists in the market. The 4-hour chart shows a declining price channel with little room to maneuver within the Bollinger Bands. The bitcoin price analysis shows that the volume of the BTC/USD pair is low and does not involve significant price movement. Even a massive drop requires large volumes because sellers need to dispose of BTC in large quantities. So as long as BTC/USD doesn’t drop below the 200-day EMA or $30,000, investors aren’t too worried. On the other hand, if the price falls to the pivot point below $30,000, investors will likely buy BTC to accumulate and wait for the worst to pass.
Bitcoin Price Analysis Number: Bulls expect a jump above $36,000
Despite the negative news surrounding the financial markets, savvy investors are in accumulation mode, as evidenced by blockchain data. The overall supply of BTC is increasing, suggesting that long-term investors are holding BTC. Long-term investors are still benefiting from relative gains, while those who bought in early May are struggling in the heat. On the daily charts, the oversold configuration changes to a neutral zone and stagnation will help to flatten the curve further. According to bitcoin price analysis, the pair will only move higher if it accumulates funds. Denial. The information provided does not constitute commercial advice. .com accepts no responsibility for investments made on the basis of information provided on this site. We strongly recommend that you conduct independent research and/or consult a qualified expert before making any investment decision.Bitcoin has a long history of highs and lows, but the last couple of months have been anything but normal. Bitcoin’s price has been slowly climbing back up toward $37K, yet it has not yet been able to cross the psychological barrier of $37,000. As a result, the current price is still $20K under the all-time high that bitcoin hit in late January 2017.. Read more about ada crypto price prediction and let us know what you think.
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