Bitcoin’s market value has dropped by close to 20% over the past week. The bearish pressure on King coin continued for six weeks. It has now reached levels it was at in August last year.
The price had briefly recovered as Bitcoin tried pushing $32,000 over the past 48 hours. The asset has fallen free since Bitcoin breached $37,000. Bitcoin’s all-time high was $68,000 which it secured in November 2021.
For multiple months, the $37,000 price level had served as support. Bitcoin is now back at $30,000 after a long liquidation spree.
It seems unlikely that there will be an upside, given the fact that the market is being controlled by sellers at the moment of writing. BTC will continue to slide below $30,000.
The One-Hour Chart of Bitcoin Prices
Bitcoin trades at $30,100 according to the latest data. Bitcoin’s $30,000 price level is acting as a support level. However, the currency can fall below that level with continual selling pressure.
BTC is also trading at the support level. If buyers can find their way back to BTC, they might push it past the $37,000 mark. BTC can trade as high as $22,000 if it is sold panicking.
Despite the recent sell-offs across the sector, the fear index continues to be high.
Bitcoin shows a downward trend (white) over the hour. This reading confirms that there has been consistent bearish activity. The volume of Bitcoin trades was shown in green. This could indicate that the price of Bitcoin might try to make a comeback. However, it’s unlikely as BTC trades near the main support area.
Technical Analysis
Bitcoin traded below the 20 SMA, this means that the market was still being dominated by sellers. The market was driven by sellers, which drove price momentum. BTC was nearing the oversold zone at the time of this writing. BTC could trade higher than the 20 SMA line if buyers push it.
Relative Strength Index was able to add something interesting. BTC’s price has caused a lot of selling pressure. But, the chart revealed bullish divergence, which is white. BTC could climb north if there is bullish divergence in the RSI, but chances of that happening are slim.
TA: Bitcoin Struggles Below $32K, Why Downtrend Could Resume| TA: Bitcoin Struggles Below $32K, Why Downtrend Could Resume
Bitcoin has been showing a bearish sign for the past few months. It was an indication that Bitcoin was on the verge of a price drop. BTC prices plummeted further after a falling wedge pattern was formed (yellow), that is considered bullish. Although there are chances of a rebound, the bearish pressure is too strong at this time.
It continues to indicate a bearish price pressure and Moving Average Convergence Divergence Awesome Oscillator showed the same result, with minimally green signal bars underneath the zero line, which highlights the negative price movement.
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Featured image by UnSplash. Charts by TradingView.com
