- Bitcoin trend analysis reflects confusion between bears and the bulls
- Recovery to $36,000 looks like a false bottom on the hourly charts
- More pain in the store as hourly charts point to further downtrend
- Daily bull run still intact as significant support levels not violated
Bitcoin’s remarkable 950 percent upmove from March 2020 lows is probably exhausting. Or is it? Bitcoin trend analysis shows a ‘Hanging Man’ pattern emerging on the hourly charts, which can take the price down the critical psychological support at $30,000.
The recent u-turn of technical indicators into the bullish zone may prove false as bears are lined up for another selling round if the price hits $38,000. Notably, the readings are still in the overbought region on the daily charts, and the weekly EMA is prompting BTC/USD for a pullback. Whether this turns into an extensive pullback on the hourly timeframe remains to be seen.
Failing to re-acquire $38,000 and surge past $40,000 will confirm a bearish hold on the charts. Such an extended sell-off can further cause losses up to the $19,890 level. On the other hand, the weekly close above $40,000 can trigger the next bull run to help BTC climb above $50,000 high.
Bitcoin price movement in the last 24 hours – Flirting with upper support levels
Ever since BTC flirted with the $42,000 level, the bears were looking to end the bullish Bitcoin trend analysis. The massive bull rally of the past four weeks had to end in consolidation so that overbought technical indicators can take a breather. In the past 24 hours, Bitcoin trend analysis is trading near the $35,000 level after going under $31,000 for a brief period.
Nonetheless, the present downturn is beginning to turn into a consolidation phase where BTC/USD holds onto key upper support levels. The pennant pattern on the hourly charts suggests that the current Bitcoin trend analysis will end up in another bull run that will take BTC beyond $45,000. That’s a long shot for the bulls since the current volume statistics are barely enough to sustain support levels.
The steep correction that began on January 10 provided a much-needed profit booking opportunity as well. As soon as the price dropped under the $39,000 level, most traders quickly book profits and sit on cash. Now, the price action suggests there are buyers lined up near the $30,000 level as BTC/USD was quick to bounce back from this crucial support pivot.
BTC/USD 4-hour chart – Hourly charts predict another selling round
The wide Bollinger Bands are now closing in, and the price action of Bitcoin trend analysis seems to be consolidating within a tight range between $33,500 to $35,700. To the tune of $1.5 billion, the massive liquidations show that derivatives are also joining in on the selling spree. The $12.7 billion all-time high of Bitcoin futures was demolished quickly as BTC price fell through the roof within hours.
The 4-hour chart of the BTC/USD pair shows that there’s still mild doom and gloom scenario left in the store. The price is following the descending channel and nearing the lower Bollinger Band. Initially, there’s massive support lined up at the $32,000 level. The drop in RSI and negative MACD suggests another downturn around the corner.
However, don’t expect it to be a massive downtrend. It will merely provide another buying opportunity at the lower price levels to the bulls to strengthen bullish Bitcoin trend analysis. The current $35,000 support may prove to be a false bottom.
Bitcoin trend analysis conclusion – Even 20 percent of price corrections are not unusual for BTC
Bitcoin is one of the most volatile assets out there. It has been known to fluctuate wildly in the past due to its reaction to various news and financial developments. The average daily movement of BTC/USD is approximately 3.75 percent. Therefore, the current correction must not be viewed negatively but rather as an everyday event.
Last year in March, BTC/USD went through a 50 percent decline on an intraday basis. Still, the HODLers did not write-off Bitcoin from the portfolios. On the other hand, many traders use BTC volatility to earn handsome returns on a short-term basis. The current decline has not yet broken daily chart support levels, and BTC is still trading within the all-time high range.
Investors willing to hold BTC through turbulent times have been rewarded handsomely. Remember, Bitcoin is still trading at 11 times its value after March 2020 lows. Such a move is spectacular on its own.
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.