Today’s Bitcoin price analysis is positive, as a dip to $29,000 was met with solid support and rejection, indicating that additional downside is unlikely. BTC/USD will likely rise more in the coming days and most likely surpass the $31,000 resistance.
Bitcoin’s psychological price of $30,000 is an indication that it has a strong purchase area. We’ll look at why Bitcoin’s recent consolidation around $30,000 is a promising sign of future price increases.
Bitcoin falls 57% from ATH
Bitcoin’s prices dropped from $69,600 at its peak to $29,350 today. This price drop of 57 per cent destroyed all cryptocurrency markets. Due to the falling prices, a snowball effect started, which caused other cryptocurrency projects to sink further.
Bitcoin’s price range is crucial. This price was the same as what large companies paid for Bitcoins. Figure 2 also shows that Bitcoin prices have historically been centered around these positions, before beginning an upward trend.
BTC/USD 1 day chart showing consolidation area. TradingView
Over the past week bitcoin trading has been sideways. Solid resistance was provided by $31,000. An important support level of $29,000 has been reached, which indicates a strong consolidation area that needs to be cleared before bitcoin can develop further.
This signaled market hesitation as the prior high was at the same level of the low. Accordingly, the $29,000 recent test might lead to another retest.
Eight Consecutive Red Closes: Is Bitcoin Headed For A Recovery?| Eight Consecutive Red Closes: Is Bitcoin Headed For A Recovery?
Will Consolidation occur?
The next support zone for Bitcoin prices would be $20,000. It is likely, however that Bitcoin prices will rise after this Bitcoin price consolidation phase. A 17% price increase is the first target, which would be $35,000 at around 35,000 as the initial target. Prices should then target the psychological price of $45,000 after that. There might be a slight correction from that point, but the end result should be a breakup higher. This is the start of an uptrend.
In order for bitcoin’s price to establish a foothold at the bottom in the short term, according to Josh Olszewicz, head of research at investment management Valkyrie, volatility must reduce.
“We can look at things like the 200-week moving average, which is around $22,000. We can look at realized price, which is the average price of coins that have moved on-chain, which is around $23,800,” Olszewicz said on CoinDesk TV’s “First Mover” program. “This [movement to hit bottom] will probably take at least all of Q3, perhaps Q4 as well, if it were to happen this year.”
Other variables, like as the US Federal Reserve boosting interest rates, are also influencing bitcoin’s market performance, according to Olszewicz.
His speculation was that institutional investors might be the ones driving the downturn. According to Olszewicz the average on-chain transaction size is around tens or thousands of BTC.
Olszewicz says that ordinary traders still have more influence over institutional investors than market movements. Those learning about cryptocurrencies are now jumping in during this bear market to “test the waters” and “see if they can survive,” according to him.
Suggestion Reading: The Ripple(XRP) Drops To $0.43 For Bears in Full Swing| Ripple (XRP) Plunges To $0.43 With Bears In Full Swing
Featured image taken from iStock, chart by TradingView.com
