Bitcoin is slowly slipping down near the $ 35,000 support. Technically, the recent rise to the $ 40,000 levels has also raised overbought levels and the price is now cooling. Buying must maintain momentum if the pair wants to start the next attack.
Bitcoin price analysis
The almost parabolic Bitcoin trend is a sign of the extreme upward price action. It can heat up the price action and eventually cause short, chaotic dips. The unstable Bitcoin outlook is causing a déjà vu, which reminds traders of the 2017 crash. As the market has recovered relatively quickly from last autumn, there could be a fairly large and mature correction.
After the $ 41,940 peak, the coin dropped 28 percent to $ 31,000. Recovery took place within a week, and BTC / USD touched $ 40k to signal a return to the bull run. Professional investors and traders anticipate a permanent reversal of the trend as higher levels of profit booking are clearly visible in the current price action.
Bitcoin price action over the past 24 hours indicates a strong trend reversal.
Bitcoin managed to hold the $ 35,000 support on the hourly charts. Weak weekend liquidity makes the short bull rally even more difficult. The rejection of $ 40,000 indicates that sales activity is concentrated at higher levels. The bears are ranked around $ 38,000 and then around $ 40,000.
Technically, Bitcoin trend analysis shows that sharp corrections follow parabolic price movements. The events of 2017 are fresh in the minds of traders and investors. The current market scenario reflects a high degree of “FOMO” and this enthusiasm never ends well for the asset.
For the past 24 hours, the BTC price ranges from $ 37,990 to $ 35,100. Any strong correction below $ 34,000 could trigger a selling spree that could push the price below the substantial support at $ 31,500. A typical bearish rally could destroy about 30 percent of the current BTC value.
4-hour Bitcoin price chart
The short-term scenario for Bitcoin trend analysis points to a modest correction for the technical indicators to cool. The price is currently trading near the $ 35,300 level, with most technical indicators pointing upwards. The drop to $ 30,000 will mark the 382 Fibonacci retracement as well as bring the daily support levels in the equation.
Daily candles must close above the $ 38,000 level to restart the next leg of the bullish rally. The falling trend line is pushing the price towards lower supports. Initial support lies at $ 34,500, the .23 Fibonacci retracement of the current rally. Looking ahead, the price could range from $ 35,000 to $ 37,850.
Critical levels for BTC
RSI is at 44 and pointing below. Therefore, there may be a slower decline on the hourly charts. The .5 Fibonacci retracement is currently near the 100-day simple moving average at $ 29,600. Hence, the price seems safe as both levels are far beyond the range at the moment.
The falling trend line indicates a significant resistance at $ 37,150. Snipers expect the price action to reach $ 38,000, which provides more resistance to the bulls. If the price exceeds the all-time high of $ 42,000, sellers can intensify their actions to offer resistance at $ 43,368, where the current bullish cycle’s 1,272 Fibonacci retracement is located.
