- Bitcoin price analysis stays deep in the red as BTC vulnerable to more losses
- BTC/USD has broken past $37,100 and trading around $36,900
- Bearish bias rules the market as participants battle thin weekend liquidity
- Crucial support at $30,000 is providing critical support to the long-term bulls
The Bitcoin price faces its next bearish peril as the pair slides towards crucial support at $34,000. Held by the thin weekend liquidity, BTC/USD shows signs of the bearish onslaught as a new week begins. The bulls are looking confused as new positions are nowhere to be seen in a sea of red. Bitcoin price analysis shows that the volatility and the risk appetite are resulting in consistent erosion of value.
Further losses are on the cards as the price is unable to hold the $35,000 support level. Last week’s $30,000 pivot point may be back on the hourly charts since the 200-day moving average may not hold in front of the intense selling pressure. The sentiment in the cryptocurrency sector is highly negative, and most altcoins are performing under par.
Multiple long-term support levels have been breached, starting from $42,000 and then at $35,000. Major investors and traders are waiting for the bearish clouds to clear out before taking the plunge. The fundamental front is not dishing out any positive news, and the whole crypto scene is witnessing an uncertain phase.
Bitcoin price movement in the last 24 hours: Volatility obfuscates daily price trajectory
Even though Bitcoin is no stranger to volatility, the past few days have surprised the veterans and new traders alike. A sharp fall of approximately 30 percent has cratered the hopes of crypto bulls. The rude awakening came when the BTC market capitalization had reached a new high. The fall from $50,000 to $43,000 was abrupt and broke the back of many investors. The rout resulted in the destruction of vital support levels at $42,000 and then at $35,000 taking Bitcoin price analysis down with it.
Currently, the BTC/USD pair is trading under $37,000 with a downward bias. The price is retracing higher but with slight upticks. The daily charts show the pair has broken many support levels and the moving averages are all trading above the current price. Bitcoin has been able to trade above the $30,000 support level and avoid a more profound downfall. The charts are filled with lower-low candles signaling further weakness in the pair and in Bitcoin price analysis. The decline that began in the middle of April is consolidating into a steep decline for the pair.
BTC/USD 4-hour chart: $43,000 resistance giving tough challenge to bulls
As the price grinds forward slowly, the higher resistances are coming into play. Firstly, the $40,000 resistance is likely to pose a severe threat to any immediate rise. The bulls will have to muster decent volumes to cross the next resistance at $43,000 to recapture lost ground. Both these challenges are likely to stall any quick recovery in the Bitcoin price analysis.
On the hourly charts, there is considerable resistance at $46,000, making it difficult for the bulls to build momentum. The BTC/USD will gain its luster back only if it closes above $45,000 daily. The RSI at 43 paints a bearish picture for the bulls. Also, the MACD indicator is not showing any signs of a probable crossover in the near term.
If the bulls cannot defend the $30,000 support, the pair can slide towards $27,450 support underneath. Such a scenario can create a lot of problems for the investors and traders. No technical indicator is pointing towards a retracement of the bearish downturn in the Bitcoin price analysis.
Bitcoin price analysis conclusion: Bears have the upper hand
Institutional investors have downgraded Bitcoin’s targets, and the current downtrend will only confirm the bearish case scenario. The first significant resistance lies at $39,700, where the volumes are likely to turn lower. The January 21 high of $42,000 will bring in another round of selling and dampen the spirits if the momentum isn’t vital.
The oversold technical indicators are not showing any signs of a reversal. The extended bear run can last for the next few days since the overall sentiment in the crypto industry is reasonably negative. For now, the Bitcoin price analysis is set to remain negative biased, with the price moving in a tight range of $39,00 to $35,000.
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