Bitcoin price analysis: BTC rebounds from sub $30K dip but threat looms large

Bitcoin price analysis BTC rebounds from sub K dip but threat looms large

TL;DR Breakdown

  • Bearish Bitcoin price analysis in full play as the pair struggles to cross $33,000
  • BTC/USD goes below $30k to touch a low of $28,600
  • Bulls face massive resistance at $33,500 and then at $36,000
  • In the past seven trading sessions, BTC has lost 22 percent value
Bitcoin price analysis: BTC rebounds from sub $30K dip but threat looms large 1
Cryptocurrency heat map by Coin360

As our earlier Bitcoin price analysis predicted, the BTC/USD did take a dip below $30,000 support level. However, the joy for bears was short-lived as the pair rebounded pretty quickly and went above the $32,500 region. The buyers defended the $30k support region pretty well and the same has been evident in the large candlestick patterns immediately following the dip.

On the other hand, the rebound momentum is weak and volumes are not large enough for the BTC/USD to cross $36,000 resistance zone. The technical indicators on the weekly charts, including the RSI and MACD charts, are yet to register a fully oversold reading. Thus, there can be persistent downside or sideways action in the coming days as per Bitcoin price analysis.

The 61 percent Fibonacci retracement of last year’s March lows remains at $27,000 and will provide ample support to the pair in the short term. Today’s sell off stabilized near $30,000 support area with buyers looking to accumulate the pair for short-term trading.

Bitcoin price movement in the last 24 hours: $30,000 breached half-heartedly

Even though the dip towards $28,600 was sharp, the volumes quickly moved to the bull’s side and the BTC rebounded sharply. In fact, the candlestick that went to $28,600 lows shows an upper reading of $31,975 reflecting the quick defence of the bulls. The upside does show the accumulate strategy of large investors and traders alike.

In the last 24 hours, Bitcoin has traded between $33,500 to $28,600. The volume data does not match the relatively large price action movement. With muted volumes, the liquidity remains muted as well. Compared to Bitcoin, the altcoins have shown a relatively good performance with UNI and ETH registering a decent rise.

At press time, the BTC/USD pair is trading at $33,340. The Bollinger Bands are still in a stretched mode but are likely to contract since the decline has been arrested by the bulls. Going by the trend, Bitcoin may see an upward movement towards $33,800 before it faces any significant selling pressure.

BTC/USD 4-hour chart: Bulls and bears fight it out after sharp dip to $29K

Bitcoin price analysis: BTC rebounds from sub $30K dip but threat looms large 2
Bitcoin price chart by TradingView

Currently, the crypto’s price is in a recovery mode following the downtrend according to Bitcoin price analysis. The hourly charts show that the gradual decline in price action is followed by a sliding Bollinger Bands. The descending price action is slowly eroding the value of BTC which has decreased by 22 percent in the last seven trading sessions.

Technically, the RSI was not affected much during the dip and is well settled in the neutral zone. The buying and selling pressure is in a balancing act. The Awesome Oscillator is also showing no massive movement to indicate any immediate threat to the bulls or the bears.

Bitcoin price analysis conclusion: Will BTC retest $30K?

The current decline in BTC price is now in its third month and the all-time high of $64,800 are a long way behind. The crackdown in China and the hawkish stand of the US Federal Reserve will only contribute to more bearish pressure on the coin as per Bitcoin price analysis.

If the buyers can push the price above $34,000, the momentum may take the pair towards $37,000. There’s crucial resistance at $35,000 and then further at $37,600. Volumes and liquidity combination will help BTC/USD survive the bearish onslaught that awaits the pair further ahead. Bitcoin price analysis suggests that sellers will line up to force the pair back towards $30,000 pivot point.

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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