- Bitcoin price prediction oscillates from bullish to bearish
- BTC/USD touches $29,000 low amid bearish price action
- Bitcoin holds onto key trendline and the daily support at $30,000
- Rangebound price movement is slowly grinding south with $32,686 as resistance
Bitcoin price prediction is all but bearish, with the slideways movement opening up lower support levels. The traders’ aggressive profit booking on higher levels past $34,000 is pushing BTC/USD lower again. The investors are reconsidering their long-term strategies as the weekend approaches since the current correction may extend as per technical indicators.
The sharp drop below the $30,000 level to touch $29,000 support also shows that large investors may have dumped their long BTC positions. Institutional inflows have been instrumental in bringing up BTC/USD to the current elevated levels within a year. Any bad omen from large institutional investors can turn the price over its head. Derivatives and aggressively leveraged traders may face headwinds if the bearish rally extends.
There has been buying at lower levels, especially at $29,000 fall, which has propped up the price. At the time of writing, BTC/USD pair is trading at $32,709. The bulls are trying to regain control of $33,000 resistance after the recent lows. Technical indicators, including RSI and MACD, do not support any aggressive bullish moves on the charts, though.
Bitcoin price movement in the last 24 hours – outflows threaten BTC long positions
CryptoQuant data shows that large BTC pools are experiencing excess BTC outflows. Also, outflows may not always reflect the dumping of positions. But in the current situation, large-scale profit booking cannot be ruled out. Inventory reorganization may also trigger a reduction in BTC holdings. Such figures do show that the BTC market is changing.
In the last 24 hours, Bitcoin price prediction swung wildly as the pair touched $28,800 low only to rise again to $33,000 level. Bitcoin is displaying a typical ‘dead cat bounce’ pattern where the asset is undergoing a bearish phase. Chances of a bullish trend reversal look bleak since the buying at lower levels is insignificant right now.
The price is trading well below the 20-day exponential moving average, which lies above at $34,150. The rangebound Bitcoin price prediction is trending towards the lower end of the shrinking Bollinger Bands. The bulls have been unable to push BTC/USD back above the symmetrical triangle. It does show that there is some demand at higher price levels. Today bears restarted the selling session near the 20-day EMA to break bullish resolve and weaken the buying momentum.
BTC/USD 4-hour chart – Red candles paint a bleak picture
The 50-day simple moving average is the next support at $28,103. However, successive selling sprees by the bears will threaten any upward movement beyond the $33,780 level. If the pair is rejected once again from the 20-day EMA at $34,100, the pair won’t likely recover to fresh highs anytime soon. The sentiment will shift from buy to sell on highs.
Any sharp breakout below the 50-day simple moving average can further intensify the selling rallies, which can see the price plummet through $22,100 support. The 61.8 percent Fibonacci retracement of the current bull rally lies at $22,110. Although unlikely, this massive support will prevent any untoward bearish movement on the weekly charts of Bitcoin price prediction.
The higher resistance at $34,000, where the 20-day EMA resides, will have to be pierced confidently on the bullish side. The bulls must create suitable momentum along with sufficient volumes to get the uptrend going. In case the price breaks above the 20-day EMA, chances are that price will travel to $40,000 level without much resistance.
The MACD crossover is relatively weak right now to support any massive bull rallies. The RSI stands at 43, meaning there is a fair amount of room down south for the price. The Bitcoin price prediction now relies on the next signal from either bulls or the bears, although bears have the upper hand.
Bitcoin price prediction conclusion – Will BTC/USD cross $34,000?
The 20-day SMA is now sloping southwards, meaning the price is under headwinds. Bears will likely intensify the selling over the weekend. The price is going to find significant support at $30,000 and then at $29,000 initially. However, thin liquidity on the weekend will ensure that the price can undergo wild movements on either side.
Volatility is relatively low compared to recent bull rally periods. The sell-off will intensify once the price crosses $28,000 support, which will invite fresh short positions. Right now, the price is trying to enter a consolidating range. Bitcoin price prediction remains volatile over the weekend.
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.