- Bitcoin price prediction expects a drop to the $24000 mark.
- Strong support resisting the drop lies at the $31600 mark.
- Strong upward resistance currently lies at the $32800 mark.
- Bitcoin is becoming a crowded trading market.
The king of cryptocurrencies is on a downward trend. Bearish pressures have taken over the cryptocurrency’s market, and it appears as though the king is set to reverse the gains it achieved at the beginning of the new year. The 24-hour high for Bitcoin was $35,930 and while continuing its downward trajectory, it reached the 24-hour low of $31,370. At the time of writing, the cryptocurrency stands at $32,248.
The market sentiment has turned bearish for Bitcoin after a while. Out of the 28 technical indicators, 11 are sell indications, whereas 10 indications are neutral and seven are buy signals. Nine of the oscillators are standing at the neutral position with buy and sell at one indication each. 10 of the moving averages are giving out a sell signal, while one is indication is neutral with six buy indications.
Bitcoin price prediction: What to expect?
Analyst Vince Prince has identified major formations in the cryptocurrency price action in his Bitcoin price prediction. The analyst warns that the bearish pullbacks should not be underestimated because Bitcoin is on its way to reversing much of the last month’s growth. Bitcoin has broken out of the ascending trend line it had been following since December 2020. Prince furthers an earlier pullback to the price level of $31,000 has established it as strong support for the cryptocurrency.
Per the analyst, Bitcoin has also formed a coherent wave count by completing waves A and B. Bitcoin is developing wave C at the time of writing. Per the analyst, Bitcoin will encounter a major decision zone on its downward trajectory. If the cryptocurrency stabilizes in the zone, it can gain bullish momentum and reverse its trajectory. On the other hand, Bitcoin will complete its wave formation after entering the wave C extension zone. The analyst believes Bitcoin will be valued at $24,500 in this scenario.
Analyst CoinGape has identified a descending channel formation in their Bitcoin price prediction. Per the Bitcoin price prediction, the exponential moving average (EMA-50) is acting as support, but in case the support fails, Bitcoin can drop to $30,000 or even lower. The analyst also pointed out the consistent Grayscale Investment purchases have not affected the bearish sentiment for Bitcoin. The market outlook has also been confirmed by the bearish Relative Strength Index (RSI).
Bitcoin: a crowded trading market
The king of cryptocurrencies has been listed as the most crowded trade by BofA securities in a recent survey. The king gained new heights during the new year, but bullish momentum could not sustain after Bitcoin achieved its new all-time high of $42,000. The cryptocurrency has been on a downward spiral ever since. The corrections seem to keep getting stronger.
Analysts have regarded Bitcoin price action as similar to the one during 2017. In the bull run of 2017, too, Bitcoin was dubbed as the most crowded trade by BofA securities. Soon after the survey, BTC suffered a crash that gave investors nightmares. Analysts have been warning of a Bitcoin bubble as price volatility reached new highs and institutional involvement increased.