Bitcoin price analysis shows that the recovery in the crypto markets seems short lived as the price continues to play see saw pattern. As the pair once again reaches $20,900 level, there are doubts that the price may not be able to sustain higher levels due to dwindling volumes. The recent low of $18,900 has market participants worried that sellers still have the upper hand.
The large institutional investors and whales are showing a decline in the activity. Over the last few weeks, the Bitcoin price has been in the doldrums and this past week seems no different as per long-term Bitcoin price analysis. There’s no doubt that bears still have the upper hand when it comes to sideways price action. There’s an innate feeling amongst the market participants that more new lows are in the offing as the price action does not inspire confidence.
Bitcoin price movement in the last 24 hours: $21k rejected again by the bulls
The past week saw BTC price moving between $22,000 and $19,000. The crash towards $18,900 reignited fears of another sharp fall towards $17,000 but the bulls sprung into action. There’s decent support near $18,000 in case any quick fall happens. The price seems to be stuck due to low trading volume and volatility drop according to Bitcoin price analysis.
Any macro event can trigger a chain of events which can drop the price lower. In case of a breakdown from $18k level, the price can go even lower to touch $17,000 level. However, technically it seen that the current safety from fall towards $17,000 will trigger some buying action. Bulls can push the BTC/USD towards upper resistance at $24,000. The 50-day moving average also sits right there near $24k level.
A breakout from the current levels may also inspire short-term day traders to jump in on the action as per Bitcoin price analysis. A fierce bounce back can also trigger higher levels such as $27,500 into play and that would define the mid-term trend of the market.
BTC/USD 4-hour chart: Massive volatility awaits Bitcoin?
Large moves in the price action are made when there’s huge volume to create large volatility. Whether it turns bullish or bearish depends on multiple factors. The accelerated growth phase is only possible if the macro news seems favorable. Higher levels such as $22,500 can also trigger selling orders from bears.
Bitcoin has been moving towards the lower end of the symmetrical triangle that is limiting the price. In order to sustain the lower levels, the bears need to keep the price under $21,000 level. On the other hand, the bulls must maintain the price near 20-day moving average. The RSI is rising steadily over the past few hours to reach 50 level where the price can stagnate for a short term.
Bitcoin price analysis conclusion: False hopes can cause massive losses to day traders
Day traders must not keep false hopes with regards to any large upward movement. In the absence of any major positive news or large volumes, the price will only deteriorate. The bulls are also trying to take the price higher but the weekend volumes will only drive the prices lower. The price is bouncing towards the lower end of the triangle pattern towards $18,500.
Overall, the Bitcoin price analysis remains bearish and the recent dominance of the bears is fading fast. The bearish flag shows more pain towards the downside in the upcoming week.