- Bitcoin trend analysis moving in a tight range between $33K to $36K
- BTC price stuck in a tug-of-war between the bulls and the bears
- The $35,000 is pivotal to BTC’s future journey on daily timeframes
The current BTC price range will make or break the ongoing long-term bullish journey of Bitcoin. As the price struggles to hold the $35,000 level, the technical analysts are worried whether the range will eventually turn into another buying opportunity, as proven in the recent past.
Bulls hope that the current range will break to the upside where BTC/USD will reclaim the $42,000 level. Most of the consolidation phases in the recent past have resulted in BTC jumping to ever new highs. However, the bears have a considerable hold on the market right now, and they are prepared for another false bull run beyond $38,000 where they can sell in droves. In such a scenario, Bitcoin trend analysis can quickly fall below the crucial $30,000.
The long-term weekly outlook is still very much bullish. The recent correction has skewed the medium-term outlook towards the bears. A combination of geopolitical crisis and a strong dollar is building a negative Bitcoin trend analysis.
Bitcoin price movement in the last 24 hours – Hovering near crucial support
The BTC/USD pair went down south on Wednesday after a massive rally took it to fresh new all-time highs. Profit-taking and a rising US Dollar saw the price plummet below the $30,000 level as bulls struggled to understand what was happening. The quick bout made Bitcoin trend analysis negative, which was expected after technical indicators turned excessively overbought.
At the time of writing, the price is hovering near a crucial pivot point of $35,000. On the daily and hourly charts, the $35k pivot point means a lot as it is a crucial support level built to withstand extended selling bouts in Bitcoin trend analysis. After many days of heightened volatility, the long-term support levels have risen following an ascending price channel. So, any break below this level can mean weakening bullish resolve on the daily timeframe.
Other altcoins like Ethereum and Cardano are also experiencing similar volatility and consolidation phase. In the past five months, the BTC price has gone up by almost 230 percent, and the cryptocurrency market is experiencing a massive boom. Thus, talks of speculations and bubbles are also propping up rapidly in Bitcoin trend analysis.
BTC/USD 4-hour chart – Bitcoin looks stable in short-term
After an approximately 11 percent price drop, Bitcoin trend analysis is now stabilizing, albeit in a tight range. The trendline support is waning fast, and the price is moving lower towards the $33,500 support level. Currently, the price is near the 23.6 percent Fibonacci retracement, close to the $35,700 level, and well above the support region.
A zone of resistance near the rising price channel on the hourly charts between $36,000 to $38,680 may prove a tough spot in the short term. The 20-day SMA is providing support to the price. The ‘Relative Strength Index’ is comfortably beneath the 70 reading, indicating that a bull run is sustainable. The MACD is giving mixed signals since the price is unable to break to either side. Also, the Bollinger Bands are closing in on the range-bound price.
If bulls can gather liquidity to build volumes, the price can cross the present resistance channel. The bull run must also strive to close the price above $37,670 resistance soon if they want to sustain the long-term bull run and retest $40,000 soon. However, there is strong opposition lined up near the $38,000 level.
Is this correction the end of the crypto bull run?
When famed investors like Mark Cuban compare crypto with the 2000’s Dot Com bubble, his comments will undoubtedly reverberate through the investor community. The current meteoric rise does raise eyebrows, especially considering the overbought technical indicators. Traders and investors are worried about the extremely bullish daily charts and hoping for a healthy correction with minimal volatility.
The present correction saw the price decrease from $42,000 highs to the current $35,000 level within just four days. Such a volatile move does raise questions about the bubble bursting phenomenon. However, unlike 2017, crypto markets are now much more mature, and regulations are in place globally. Even if a catastrophic bubble bursting event occurs, Mark Cuban believes some coins will come out unscathed while the weaker counterparts may not survive.
Bitcoin trend analysis conclusion – Beware the risk aversion wave
Profit-taking and lack of confidence in price action may spark another bearish run on the BTC price. However, the downturn may prove short-term since the financial markets are already pricing in some correction post the December rally.
As the BTC price retreats to $35k, the technical charts paint a critical picture. The current Bitcoin trend analysis reveals that a weekly close above $38,000 is needed to rekindle a bull run. Remember, the long-term Bitcoin bull rally is very much alive on the daily charts.
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.