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Bitcoin price analysis: BTC winter sets in as $37K poses a challenge

Bitcoin price analysis BTC winter sets in as K poses a challenge

TL;DR Breakdown

  • Bitcoin price analysis shows bulls losing steam as price drops to $35,100
  • Current stagnation turns into another short-term bearish decline
  • Long-term HODL’ers are accumulating as per on-chain data
  • BTC/USD trying to cross $36K in a bid to reach $38,700 resistance once again
Bitcoin price analysis: BTC winter sets in as $37K poses a challenge 1
Cryptocurrency heat map by Coin360

Another day of decline greets Bitcoin investors and traders as the price is unable to cross $36,000. The downward pressure mounts on the bulls as they seek more liquidity and volumes to prop the BTC higher. The signals from the US Federal Reserve about raising the interest rates have also increased the volatility in the market and put more selling pressure on the BTC.

The BTC has been stuck in a tight range for the past two weeks, with the upper limit at $39,500. The news of an increase in interest rate from the US Federal Reserve will mean another big blow for the pair, which is already facing severe selling pressure. Furthermore, the probable rise in US Dollar will also lead to a decline in the BTC price.

So, what does it mean for the future of Bitcoin? Well, Bitcoin price analysis shows that the BTC has been able to fend off such news in the past with minimal reaction. However, considering its safe-haven credentials, Bitcoin will likely respond neutrally to a mildly bearish tone if Fed hurries towards a rate increase.

Bitcoin price movement in the last 24 hours: The stagnation is getting long in the tooth

The daily chart of BTC/USD shows the stagnation phase to continue. There is also a hint of accumulation in the charts with the pivot point support near the $32,000 level. The move upwards will take a lot of volumes and liquidity on the part of the bulls. Bitcoin price analysis shows that the bulls face heavy resistance near the $42,000 price level, where the chances of a bearish reversal remain elevated. An emerging bearish engulfing candlestick pattern may further cement the bearish viewpoint in the next 48 hours.

The 200-day exponential moving average shows a strong pivot point that is holding the pair well. A fall below $32,000 will negate the current support pivot points and induce a long-term negative trend on the charts. The Stochastic RSI indicator shows a D-65 reading which corresponds to a sell signal for the BTC/USD pair. For the past 24 hours, the ‘Relative Strength Index’ indicator has held near the 40 range with a negative bias, shows Bitcoin price analysis.

As per Bitcoin price analysis, the volume data is unable to move below the 20-day moving average near the 4,620K level. Thus, if a bear rally begins, the nearest short-term target is $32,500, which can accelerate towards $30,000, where massive bull walls will prevent any sharp declines.

BTC/USD 4-hour chart – No change in a short-term bearish outlook

Bitcoin price analysis: BTC winter sets in as $37K poses a challenge 2
Bitcoin price chart by TradingView

A range of negative news is hitting the crypto market, and it remains to be seen how much the market responds to the chatter. First, the US Federal Reserve has hinted at increasing the interest rate near 2023. Also, the news of Chinese authorities shutting down BTC mining firms is not going down well for crypto investors. Additionally, the unfortunate TITAN saga involving huge losses for billionaire Mark Cuban is still fresh.

Currently, the Crypto Fear and Greed Index is showing a reading of 25, reflecting the high fear prevailing in the market. The 4-hour chart is showing a falling price channel with little room to move within the Bollinger Bands. Bitcoin price analysis reflects the volume of the BTC/USD pair is low and does not entail any significant movement in the price.

Even a massive bearish decline will require large volumes since sellers need to dump BTC in large quantities. So, until the BTC/USD falls below 200-day EMA or $30,000, the investors won’t have much concern. On the other hand, if the price falls to a lower pivot point at $30,000, the investors will surely lap up more BTC for accumulation and wait for the worst to get over.

Bitcoin price analysis conclusion: Bulls await a rebound past $36,000

Despite the negative news surrounding the financial markets, savvy investors are in accumulation mode, as is evident from the on-chain data. The total BTC supply is rising, which shows that long-term investors are holding. The long-term investors are still relatively profitable, and those who bought in early May face the heat.

On the daily charts, the oversold pattern turns into a neutral zone, and the stagnation will further help smoothen the curve. According to Bitcoin price analysis, as accumulation grows more robust, the pair will only move higher.

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.

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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