- Bitcoin trend analysis still stuck in a range at price declines below $37,000
- Extended sell-off threatens BTC/USD post $38,000 level
- The daily support level at $30,000 must stay intact for another bull rally
Bitcoin price is still far from the psychological $40,000 level. The recent pullback has caught many bullish traders off-guard since the BTC/USD pair is undergoing a safe consolidation stage. The resumption of the uptrend depends on whether the pair will survive key support levels. In the past 24 hours, close to $500 million worth of BTC has been liquidated due to high volatility. Also, highly leveraged positions can be a liability for the BTC/USD pair during an extended uptrend.
In a sharp correction, the highly leveraged bull positions can cause huge losses due to margin calls. Such positions are dumped at the first sign of a bearish rally and further contribute to the price decline. The sharp plunge in Bitcoin trend analysis is evident in cascading support losses. Right now, the plunge is gradually converting into consolidation.
Sustained buying needs to emerge post $36,000 level to ensure the continuation of the bull run. The overleveraged positions, once cleared, will give another buying opportunity to traders and investors alike. Failure to achieve this can cause a sustained decline in the price. The broader crypto market sentiment remains positive, and investors are looking to enter at lower levels.
Bitcoin price movement in the last 24 hours – Gradual grind above $36,000
Bitcoin trend analysis is pointing south but only slightly. At the time of writing, the price hovers above the $36,100 level, which is moderately above the 21-day simple moving average. The BTC/USD is not getting positive signals from MACD as the indicator shows a falling trend line on hourly timeframes. Some significant Fibonacci levels are still in the negative territory giving further impetus to the bears.
The intraday low of $34,777 is under the critical $35k support level that has helped BTC survive extended bear runs. Now, the jump above the $36,100 threshold shows that bulls are slowly grinding the price higher. If the pair successfully closes above $36,500, the pair does have a fair shot at $38,000 level next. However, the price must sustain above 21-day SMA for the next few days.
The corrective pullbacks are strengthening the bears who are looking for fresh opportunities to sell at higher levels. The BTC/USD sellers are emerging past $37,000 and increase intensity post $38,000 level, thereby making the journey to $40,000 perilous. The short-term resistances lie at $36,500 and then at $37,000.
BTC/USD 4-hour chart – $38,000 holds the key to $40k
A downward sloping trend line is emerging in the hourly BTC/USD 4-hour chart. If the $37,980 resistance proves challenging, the pair can slide towards $35,000 support. Any break below the 21-day SMA can also spell doom for the Bitcoin trend analysis, opening the flood gates to a $30,000 support level.
In a bullish scenario, the $38,660 is a pivotal resistance that can open up the way for a $40,000 psychological level, which brings into the picture $42k highs once again. If the pair can avoid 61.8 Fibonacci retracements at $29,700 on the weekly charts, Bitcoin trend analysis does bring in fresh all-time highs.
The RSI and MACD are both indicating another short-term bear run on the charts. The pair must build support at the $36,000 level to jump further to higher levels. Today, Bitcoin hit reverse from the $37,449 mark, signaling an inherent weakness in buying action.
Bitcoin trend analysis conclusion – Close above crucial resistance at $38,000
Bitcoin has fallen short of the $38,000 level on the day’s close. The price is sliding towards the $36,000 support level, bringing in more downside in the near term. Bitcoin would need support from the broader crypto market to muster up higher levels.
Barring an extended bullish rally, the price is unlikely to cross the $40k level any time soon. The upside in Bitcoin trend analysis will be capped at $41,000. An extended breakout can push the price above $42,000, and BTC can test technical resistance at a $44,870 level.
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