- Bitcoin price prediction under threat from the Chinese crackdown on cryptocurrency
- BTC/USD turning increasingly bearish as price hovers below $39,000
- Crucial resistance lies at $40,000, and bulls need to close above $40k
- Regulatory warnings from across the globe threaten to derail BTC further
As the bearish saga in BTC/USD continues, the prices are facing increasing pressure from significant trendlines. Currently, the price is trading at $37,800 and well below the significant resistance at $40k, where the sellers are putting more pressure on the pair. The rising apprehensions from various nations regarding crypto regulations are also sending mixed signals in the market.
The BTC/USD pair has come down 18.5 percent from its previous week’s lows this past week. In a significant turn of events, the past two weeks have seen the cryptocurrency come down from its peak of $64,895 and violently touch $30,000. Many investors went bankrupt, and traders were left surprised by the sharp downturn. However, things have started to cool down as the par settles near the $38,100 region.
The end of the volatile week has once again bought forward the peculiar question: where is the bottom? Technical analysis of Bitcoin price prediction shows that the pair will consolidate near the current levels before charting a future course.
Bitcoin price movement in the last 24 hours: Consolidation reigns supreme
At the time of writing, the BTC/USD pair is trading in a tight range of $38,800 to $35,625. The Bollinger Bands are squeezing further to create a bottleneck which can see the price jumping higher. If the bulls can manage some liquidity, the price can undoubtedly close above $40,000. However, muted technical indicators do not support an overly bullish trajectory.
The past few days saw Bitcoin continue its journey lower towards the $40k mark after the $50,000 support was broken the past week violently. The pair found initial support near the .618 Fibonacci resistance at $42,710 and took a breather. The bulls, however, continued their selling pressure, and the pair slid further towards the $35,000 support region. The intense selling activity bought $30,000 on the charts, albeit momentarily.
The massive move to the south has shown that the volatility in cryptocurrencies still rules the charts. Since the sharp downturn, the pair has risen to trade in the vicinity of $36,750. It remains to be seen when the investor and institutional support comes to Bitcoin’s rescue. So far, the Bitcoin price prediction is unable to shrug off the bearish vibes.
BTC/USD 4-hour chart: Price hovering near key moving averages
The 200-day moving average is trading above the price at $42,000. Any sharp move can bring the pair in close vicinity of the 200-day MA, where it will find resistance from the sellers. The bulls will have to move beyond the $42,000 level and close above the $42,750 to cut the bearish onslaught. Further ahead, the pair will face stiff resistance from $50,000 and $53,000 price levels.
Currently, the pair is well supported by the $35,000 and $30,000 support points. The broader crypto market is witnessing selling, and the altcoins are in no position to support the BTC/USD pair. The indiscriminate sell-off has broken long-term support levels, and the Bitcoin price prediction is in a sustained bearish outlook. The market sell-off is estimated to be close to $1 trillion, and the outlook is still broadly negative, making any quick recovery in Bitcoin price prediction unlikely.
The RSI stands at 43 with a neutral bias on the hourly charts. The MACD is showing no sign of any upcoming crossover. The closing Bollinger Bands does give hope of a breakout, but the thin weekend liquidity will only confuse the traders.
Bitcoin price prediction conclusion: A peaceful weekend supports BTC/USD near $38k
The Chinese clampdown on cryptocurrency is making matters worse for the Bitcoin price prediction. Also, the tweets from Elon Musk are confusing the traders about his clear stand regarding crypto. The unwinding of leveraged long positions on a massive scale means confidence is in short supply in the bull camp.
With weeks’ worth of crypto gains gone overnight, the traders will need a solid signal to place large buy orders. If the market consolidates near the current support level at $35,000, the next week can see muted bullish activity resuming. However, the rising volatility and a negative sentiment make Bitcoin price prediction bearish.
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