Bitcoin price analysis: Bears ready to pierce $30K and bring Bitcoin Winter

by Gordon James

After a year of consolidating around the $8,500 level, bitcoin is starting to look ready to break its downtrend. It remains in a consolidation pattern, but if the bears can pierce through $30,000, then we’ll have a test of $5,000, which is the lowest since November 2014. On the flip side, if bulls continue to hold the $10,000 resistance level, then we’ll see a test of $12,000, which is the highest since April 2017.

Bitcoin’s price is currently hovering around $4,700, a level it has been stuck at for several weeks. This is an interesting phenomenon; while the cryptocurrency is still one of the most popular, it is not achieving the same levels of investor interest as last year. An important factor is the relatively subdued recent price action. Bitcoin’s price has been on a slow decline since the middle of May, which has seen the cryptocurrency trigger a bearish wave. This recent rise in Bitcoin has seen a re-test of the $4,700 mark, but the majority of investors still believe that Bitcoin will continue to decline.

The Bitcoin price has been on a classic bearish move for several weeks now, breaking the $30K barrier on several occasions, only to fall back below. Fear has gripped a large part of the Bitcoin community, and the price is now at a critical juncture between $29K and $30K. Will it go lower, or pierce the $30K and start a new winter?. Read more about bitcoin price analysis and let us know what you think.

Summary of the situation

  • Bitcoin’s price analysis is turning bearish as the price remains close to the critical support of $30,000.
  • MicroStrategy bought $489 million worth of bitcoins during the recent price drop.
  • A bearish wedge pattern appears on the bitcoin charts and is a cause for concern.
  • BTC/USD reaches bottom at $31.160 amid increasing selling pressure.

Cryptocurrency Heatmap from Coin360

Bears dominate the charts of BTC/USD as the pair threatens to make new lows near the $30,000 support zone. The price of BTC dropped from $34,629 to an intraday low of $31,160. There is currently excessive selling pressure in the market, as evidenced by the RSI of 32. If the Bears manage to break through the $30,000 level, the price could reach $25,000.

Bulls are seeking cover as technical indicators are giving lots of sell signals, as seen in the bitcoin price analysis. On most charts in the red, both on an hourly and daily basis, the flagship cryptocurrency shows no signs of recovering from its recent plunge. An intraday drop of around 10% threatens to retest the critical support area around $30,000, which could trigger a prolonged decline in bitcoin.

Bitcoin price analysis shows that buyers will not resist the onslaught if the bulls cannot defend the $30K wall. Big investors and institutions have started buying as the price hits new lows every day. MicroStrategy bought $489 million worth of bitcoins yesterday and now has over $3 billion in bitcoins.

Bitcoin price movement in the last 24 hours: Bears fully intervene in price movement

The daily charts are showing bearish patterns now that the price has broken through the important support zone of BTC near $32,000. The 50-day moving average shows that price is moving further south and will hit the $30,000 area in the coming days. An alarming sign will be when the price of BTC/USD drops below the 200-day moving average line.

The long-term daily charts indicate a serious situation where the price is heading towards the pivot point at $24,000 thanks to a descending wedge pattern. Large institutional investors will rush to buy more BTC if such a situation actually occurs. The Bollinger Bands open to the downside, giving the bears more room to add selling pressure.

A bearish flag on the lower Bollinger Band is accompanied by a massive red candlestick. If the long candle is followed by lower lows, it is likely that the price will drop below the $30,000 level in the next 24 hours. On the downside, the first support lies at $28,450, followed by the $26,870 area, according to the bitcoin price analysis.

Chart four hours BTC/USD: Simultaneous appearance of several bearish configurations

by TradingView

Bitcoin price analysis: Bears ready to pierce $30K and bring Bitcoin Winter

There are many bearish signals in the technical analysis of BTC/USD right now. The most significant bearish pattern indicating a deeper malaise in the BTC price is the inverse cup and handle pattern. Bitcoin price analysis shows that the price action has formed a reverse shell, indicating a further correction in the price of BTC. The price will rise a bit and then fall to deep support areas.

The inverted head and handle configuration is ideal for building short positions. The pattern is currently increasing, which means the pair is becoming extremely bearish according to bitcoin price analysis. Add volume to the mix, and the bitcoin price is a perfect storm. Almost all technical indicators reflect the sell theory, and the pair is likely to react in the same direction.

Bitcoin Price Analysis Number: A tidal wave of negative news hits the cryptosphere

With the Federal Reserve’s hawkish stance, everyone is focused on rate hikes in the coming quarters. Rising inflation will put pressure on the Federal Reserve to adjust interest rates upward, and the cryptocurrency market is also at risk, along with traditional equity markets. Analysis of the bitcoin price shows that it will also fall, along with other global indices and assets. A rise in the US dollar will also have a negative effect on BTC.

China’s crackdown on bitcoin mining has also led to risk aversion. While law enforcement is on the rise, the cryptocurrency community is seeing a decline in hashrate. The confluence of negative factors therefore ensures that prices will continue to move southwards. It remains to be seen if the Bulls can defend the $30,000 wall.

Denial. The information provided does not constitute commercial advice. .com accepts no responsibility for investments made on the basis of information provided on this site. We strongly recommend that you conduct independent research and/or consult a qualified expert before making any investment decision.

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