- Bitcoin trend analysis reflects an underlying bullish bias in BTC/USD pair
- The modest pullback will eventually help buyers and create a bull run
- BTC/USD should slow down if bullish momentum is to be built soon
- Weekend price movement remains confusing as price oscillates within a tight range
Bitcoin has been slowly grinding lower to trader near $35,000 support. Technically, the recent run-up to the $40k levels has elevated the overbought levels, and the price is cooling down. The pair must maintain a buying momentum if it wants to start the next leg up.
The almost parabolic Bitcoin trend analysis is a sign of overly bullish price action. It can heat the price movement and eventually cause short, chaotic bearish downturns. The indecisive Bitcoin trend analysis is causing a déjà vu that reminds traders of the 2017 crash. A sizeable and mature correction is due since the market recovered relatively quickly from the recent fall.
The peak of $41,940 was followed by a fall towards $31k, marking a 28 percent decline. The recovery happened within a week, and BTC/USD touched $40k to signal a return to the bull run. Professional investors and traders are predicting a lasting trend reversal since profit-booking at higher levels is evident in the current price action.
Bitcoin price movement in the last 24 hours signals a strong trend reversal
Bitcoin has been barely able to hold $35,000 support on the hourly charts. The thin weekend liquidity is further challenging the short bull rally. The rejection from $40k shows that selling activity is intense at higher levels. Bears are lined up near $38,000 and then at $40,000 level.
Technically, Bitcoin trend analysis shows that sharp corrections have followed parabolic price movements. The events of 2017 are fresh in the minds of traders and investors. The current market scenario does reflect a high degree of ‘Fear of Missing Out,’ and euphoria never ends well for the asset.
In the last 24 hours, the price is oscillating between $37,990 and $35,100. Any vigorous correction below $34,000 will spark a selling spree that can take the price below the crucial support of $31,500. A typical extended bearish rally can wipe out approximately 30 percent of the current BTC value.
BTC/USD 4-hour chart – Slowly grinding downwards
The short-term scenario for Bitcoin trend analysis points towards a modest correction for technical indicators to cool down. The price is currently trading near the $35,300 level, and most technical indicators are pointing upwards. The drop to $30,000 would mark the .382 Fibonacci retracement besides bringing in daily support levels in the equation.
The daily candles must close above the $38,000 level to restart the bullish rally’s next leg. The falling trend line is pushing the price towards lower supports. The immediate support lies at the $34,500 level, the .23 Fibonacci retracement of the current rally. Looking ahead, the price is rotating between $35,000 to $37,850 level.
The RSI is at 44 and pointing downwards. Therefore, there can be a more slow decline in the offing on the hourly charts. The .5 Fibonacci retracement is currently at $29,600 near the 100-day simple moving average. So, the price is safe since both levels are far beyond the range at present.
The falling trend line shows that there is considerable resistance at $37,150. Furthermore, sellers are awaiting the price action to reach $38,000, providing even more resistance to the bulls. If the price crosses the all-time high of $42,000, sellers will intensify their bearish action to offer resistance at $43,368, where the 1.272 Fibonacci retracement of the current bull cycle resides.
Bitcoin trend analysis conclusion – Bubble burst or another consolidation?
Multiple rejections from significant resistance levels show that the price is struggling to kick start another bull rally. Also, Bitcoin trend analysis shows that the higher valuations are also putting pressure on the BTC/USD pair from a fundamental viewpoint. Telltale signs are emerging in the form of multiple rejections from resistance, asymmetrical triangle, and falling price channel.
The market may undergo another correction as the debate centers around high valuation levels. The volatility over the weekend may lead to another round of selling since thin liquidity can spark wild movements. Bitcoin trend analysis currently supports a healthy pullback that may eventually turn into a blessing for the bulls.
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