- Bitcoin price prediction struggles to bounce back from bearish zone
- BTC/USD manages to trade within Bollinger Bands without any sharp decline
- Bears looking to cement bear rally with a downside break to take price below $50,000
Bitcoin is gearing up for another sideways trading session as the downside remains capped near the monthly support line at $53,000. At the time of writing, the BTC/USD pair is trading at $53,600 with diminishing volumes. Traders are sitting on the sidelines as the sideways action is just grinding slowly towards lower support levels.
Various technical indicators, including RSI and MACD, are flashing bearish signals. Initial support lies near the 50-day simple moving average, and buyers will be looking to build long positions near $52,000 lows to target the February highs. On the other hand, the bears are trying to break below $53,000 and challenge lower support levels on the hourly charts.
Most of the recent hourly candlesticks reflect the ‘lower lows’ pattern, which shows a bearish overtone in the market. The broader crypto market is also not giving out any positive signal to carry the market out of the bearish hold. A critical support line breakdown near $52,000 will ensure that the bears have the upper hand.
Bitcoin price movement in the last 24 hours: Every minor uptrend is now a selling opportunity
In what can be termed as a contradiction of last week’s optimism, the current price action is in a firm bearish grip. Bitcoin price prediction reveals that the $55,000 resistance remains a crucial challenge for the bulls in the short-term. It is also the price level where bears hope to intensify selling rally to carry the price decisively below $52,000 support.
The MACD is heavily bearish on the hourly charts. The lower end of the ascending trend line that began in later January comes around $52,300, and that is the initial target in case selling pressure increases. An extended bear rally can bring $50,000 into the picture. Bulls will stage recovery near the $49,950 zone as large ‘buy walls’ are present courtesy of institutional buyers.
Meanwhile, Bitcoin price prediction shows that a recovery rally is also in the works. Since the price is not declining sharply below the Bollinger Bands, the sideways trading can favor the bulls. Once the BTC/USD crosses $55,000 resistance, the price will likely jump to the next higher end of the support line at $57,300. Of course, the daily charts still paint a higher target of $60,000 despite the current stagnant price action.
BTC/USD 4-hour chart: Short-term bear rally is in the works
Another bearish omen comes from the fact that the 10-hour and 50-hour simple moving averages are trading above the Bitcoin price. The current week has seen muted price action with a downward bias. The absence of any news on the fundamental front means technical indicators are guiding the market participants.
The rangebound market has seen prices stagnant in a range between $58,000 to $52,000. On a positive note, the declining BTC balances on most exchanges show buyers are not booking early profits. They are willing to hold onto their targets in anticipation of higher levels. It also indicates that selling pressure is not high, and the Bitcoin price prediction is still in a relatively safe zone.
The RSI is in a deep-red territory with a reading of 30. If the selling activity increases, the RSI reading can dip to 20 level on the back of higher volatility. The MACD is widening further as we start another day in Bitcoin price prediction. The chances of an immediate crossover in the MACD indicator look slim. The Stochastic RSI is also showing substantial negative bias. Overall, the technical indicators are not looking suitable for the BTC/USD pair.
Bitcoin price prediction conclusion: Fresh new price lows up ahead
The short-term Bitcoin price prediction is pointing towards a bearish rally or continued correction towards $53,000 support. The U.S. Federal Reserve Chair Jerome Powell shared his views about cryptocurrencies saying that he doesn’t think of them as a valuable store of value.
Additionally, the Turkish President removed Naci Agbal as the governor of Turkey’s central bank. It caused a massive ripple in the local currency market, and people went scrambling for cryptocurrencies to protect their wealth. The flight towards Bitcoin or altcoins shows the waning trust people place in fiat money.
With Bitcoin price prediction grinding deeply towards the bearish zone, all eyes are on the immediate support at $53,000 and then at $52,000.
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.