- Bitcoin price analysis remains confusing as the price trend remains unclear.
- BTC/USD struggles to move past $37k and trades near the $35,000 level.
- Further downside expected as the pair shows weak technical indicators.
- Bitcoin has lost 37 percent value in the last month featuring sharp downslides.
Is BTC experiencing a downfall similar to the one in 2017, or is it just another accumulation phase? The current price trends show that a deeper malaise is hitting the charts as the price trajectory is becoming unclear. Even though it is not a full-blown bear market, the sellers have the upper hand.
Sustained price action below $40,000 does show an inclination towards further weakness in the price. The traders and investors are yet to initiate prominent positions on the buy-side. The BTC/USD has repeatedly failed to climb above the $40,000 mark despite multiple attempts. Bitcoin price analysis further shows that short of liquidity and volumes is further complicating the matters.
The broad trend in the market is undoubtedly weak. The price must cross $36,000 with sufficient volumes and close above $38,500 to spark buyer’s interest. Thin liquidity on the weekend will limit the upside below $40,000.
Bitcoin price in the last 24 hours: Struggling to cross $40,000
The price is undergoing see-saw movement as BTC/USD is unable to find any momentum going forwards as per Bitcoin price analysis. The bearish reversal is getting a phenomenon just as BTC tries to cross multiple hurdles. The consolidation phase is unlikely to turn in favor of the bulls. The slowing momentum will give sellers another shot at $30,000 if the following week turns sluggish.
Bitcoin price analysis shows that the BTC/USD pair fell by a whopping 37 percent in May. Such a sharp downturn was last seen in 2017 and marked the beginning of a prolonged bear market. Bitcoin is trading below the 200-day and 100-day simple moving averages, reflecting the charts’ weakness.
The corrective phase can turn into a bear market if the BTC/USD pair remains under $35,000 for multiple weeks going ahead. The support on the intraday charts looks weak, and the bulls charts can turn bearish if the current price momentum sustains longer. In the last 24 hours, the price has remained under $36,700 to $33,500 without any breakouts. Bitcoin price analysis shows that further slide towards $32,500 cannot be ruled out if the sellers increase their intensity.
BTC/USD 4-hour chart: Small candles give little hope for breakouts
The hourly charts do not show any chances of an imminent breakout. Any short-term decline can further exacerbate the selling tendency and take BTC below the $30,000 support zone. Bitcoin price analysis shows that the oversold market may correct higher to touch $38,500. Still, bears will have ample opportunity to short the BTC/USD pair before it crosses $40,000 confidently.
BTC price movements can be volatile going further into the next week as the tug of war between bulls and bears intensify. The RSI is still in the oversold region and is ticking back to life on the daily charts. However, traders must be careful as the RSI has room to go lower on the weekly charts. Thus, the upside will remain capped under $40,000.
Bitcoin price analysis conclusion: BTC bulls must spring into action quick
The support zone at $30,000 must hold well if the BTC/USD pair crosses $40,000 resistance. There is support at the $36,700 level, where the .786 Fibonacci resistance reflects a solid bull region. Also, the sellers will find support at $32,400 and then at $31,180.
Bulls are likely to face resistance first $38,000 and then at $40,000. The January highs of $42,000 will further dent the bullish hope for a revival towards $50,000 psychological resistance. The first resistance at $40,000 also represents the 200-day moving average and the .382 Fibonacci resistance of the pair. A confluence of technical indicators will have to turn bullish for the pair to cross $40,000.
Whether the current BTC price action turns accumulation or bear phase depends on the Bitcoin trajectory next week. Bitcoin price analysis shows that the weekly BTC charts are still neutral and haven’t turned bearish yet. So, BTC bulls still have a chance to accumulate at lower levels and continue the bullish trend on long-term charts.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.