- BTC/USD moved lower yesterday.
- Bitcoin trading near $30,000 support.
- Next resistance at $34,000.
Cryptocurrency heat map by Coin360
As seen in the heat map, the market has recovered much of the loss seen earlier today. Both BTC and ETH are looking to move back into a positive 24-hour gain territory.
Bitcoin Price Prediction: BTC ready to bounce?
BTC/USD opened at $30,855 earlier today after a powerful bearish momentum sent the price crashing towards the $30,000 psychological support level. As mentioned in our yesterday’s analysis, the $30,000 level still holds the key to the current market structure.
The $30,000 support previously reversed the price action of BTC/USD twice. First, on the 4th of January, after the $35,000 high was set. Second, on the 11th of January, after the current all-time high was set at $42,000. Therefore, another reversal for the price of Bitcoin was expected around the area.
So far, Bitcoin has respected the $30,000 area with a clear rejection in the form of a bullish 4-hour pin-bar. Therefore, Bitcoin should move higher in the upcoming 24-hours.
Bitcoin price movement in the last 24 hours
The price of Bitcoin has increased by 3 percent over the past 24 hours. A price range of $28,953 to $32,759 currently holds the market in place.
One of the reasons for the volatility in the markets could be linked to a decreased liquidity in the markets as several large BTC transactions are linked to transfers into cold wallets.
Bitcoin price chart by TradingView
BTC/USD 4-hour chart – Will the 4-hour pin-bar move Bitcoin higher?
As mentioned in our recent Bitcoin price prediction, the market could move towards even lower levels. The $24,000 level has previously acted as a very strong resistance. Bitcoin tested the price level several times during the second half of December. Since then, Bitcoin has moved much higher and has set a new all-time high of $42,000.
However, Bitcoin has already made a strong retracement this week as it lost around 20 percent from the local high of $37,500 to the low of $30,000. This retracement indicates that Bitcoin should reverse to the upside in the coming 24 hours.
BTC/USD could be traded as a long position, towards the $34,000 level. Traders should, however, wait for another short-term test of the $30,000 area first. If a long position is entered from this level, it would mean a potential gain of around 13 percent.
A target for the upside reversal would be around $34,000 resistance as it acted both as a support and resistance several times this year. Once Bitcoin reaches this area, traders could open a short position with the expectation that Bitcoin will look to retrace even further and break below the $30,000 support.
Considering that Bitcoin has made several lower highs during the past weeks, the mid-term trend is bearish currently. Therefore, a short position would not be against the mid-term trend. It would, however, be against the long-term trend.
Bitcoin Price Prediction: conclusion
BTC/USD has moved to retest the $30,000 support as predicted in the Bitcoin Price Prediction yesterday. A short-term long position could be made right now towards the $34,000 resistance if Bitcoin can retest the $30,000 support once again as it would provide the best risk/reward ratio entry.
Once Bitcoin reaches $34,000 resistance, traders should look for a short position as the horizontal level has acted as very strong support and resistance hitherto. Additionally, the several week descending trendline will likely offer an additional confluence of resistance.
Therefore, Bitcoin could have both a long and a short position play during the remaining week. For now, BTC/USD should consolidate a bit more to offer a better price structure in preparation for the next move.
For a long-term outlook of Bitcoin, read our long-term Bitcoin price prediction.
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.