Bitcoin stable near $30,000 but the bearish phase is far from over

Bitcoin stable near $30,000 but the bearish phase is far from over

Bitcoin stabilized at its crucial support level of $30,000. For more than a week now, bitcoin has been trading near its immediate support level.

Over the past week, the crypto has lost nearly 6% of its value, and over the past 24 hours, BTC has fallen by 3%. Last week was extremely choppy for bitcoin and also for altcoin due to continued market weakness.

The crypto had plunged to a low of $25,000, BTC had last traded around this price level in December 2020.

Bitcoin recovered from $5,000, however, a chance of further decline cannot be ruled out. The crypto’s technical pointed to continued selling pressure in the market.

Bitcoin Price Analysis: One-Day Chart

Bitcoin was trading at $29,000 on the one-day chart. Source: BTCUSD on TradingView

Bitcoin price was $29,100 at the time of writing after the crypto was rejected from the $31,000 price level. The immediate resistance for the crypto lay at $25,000.

A drop below this level will send the crypto directly to $19,000. On the other hand, if the “Bulls” send temporary relief, the crypto will aim to break above the $30,000 price level and trade near the $31,000 resistance mark.

The volume of Bitcoin traded was seen in the red, indicating a bearish trend on the overnight chart.

Technical analysis

Bitcoin saw increased selling pressure on the 1-week chart. Source: BTCUSD on TradingView

Bitcoin may have been able to show signs of stability on the chart, but there are other signs that the crypto may soon dive again. The King crypto was trading below the 20-SMA line, which means that sellers are dominating the price momentum in the market.

Support from the buyers may push the crypto above the immediate resistance of $30,000. Buyer support seems like an unlikely situation given that the crypto has formed a bearish (yellow) flag.

A bearish flag indicates further bear push, which could cause the crypto to trade below the $20,000 support mark.

The crypto had not touched the $20,000 price level for over a year now. The Relative Strength Index was below the middle line, indicating that the sellers are still in the driving seat, as seen by the SMA lines.

Bitcoin continues to receive weaker inflows on the 1-week chart. Source: BTCUSD on TradingView

The bitcoin bearish flag reflects how the crypto continued to fall on the chart after the pattern formed. The bulls got tired of the constant battle with the sellers. Consistent with the same reading, the Awesome oscillator showed a bearish trend.

The indicator dictates the market price momentum and the red histograms below the half line signify a sell signal for the crypto.

If the sellers continue to act on it, $20,000 may soon be on the charts. The Chaikin Money Flow is responsible for representing capital inflows and outflows. The indicator was below the half line as capital outflows were still dominant at press time.

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