Lorenzo Stroe
Independent Analyst
- Bitcoin price defended a crucial support level at $30,000 and currently trades at $38,000.
- However, after a significant rally in the past week, the flagship cryptocurrency might be poised for a correction.
- There are several indicators showing Bitcoin price can slip towards $34,000.
Bitcoin’s market dominance has experienced a steep decline in the past week going from 65% to only 60.8% while many altcoins are pumping quite hard. Nonetheless, Bitcoin price has recovered from its low point of $28,850 and it’s extremely close to $40,000.
Bitcoin price needs to retrace first before another leg up
On the daily chart, the TD Sequential indicator has presented a sell signal for the first time since January 10. On top of that, the parabolic SAR remains bearish just like the SuperTrend indicator, adding a lot of credence to a bearish breakdown.
BTC/USD daily chart
The current price of Bitcoin is hovering around the upper Bollinger band. A rejection from this point can push Bitcoin price down to the middle band at $34,000. Failure to hold this level can put investors into panic mode and drive BTC down to the 100-SMA at $32,000 and even slice through it down to $30,000.
BTC/USD daily chart
However, despite several indicators in favor of the bears, a breakout above the upper Bollinger band at $38,400 would invalidate the bearish outlook and push Bitcoin price towards $40,000.
BTC IOMAP chart
The In/Out of the Money Around Price (IOMAP) model indicates that Bitcoin has a ton of support below $38,000 until $32,000. On the other hand, there is only one crucial barrier between $38,200 and $38,500 which coincides with the upper Bollinger band. The IOMAP model adds credence to the bullish outlook as a breakout above this barrier will drive Bitcoin price to $40,000.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: Is BTC sell-off over?
Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs, which recorded outflows of more than $280 million this week.
Three reasons why Solana could see a double-digit decline
Solana price appears to have found some support on Friday, recovering slightly from the sharp sell-off registered earlier this week. However, on-chain metrics and technical indicators show increasing chances of a further decline in prices, suggesting that the rebound could be short-lived.
Tron network revenue exceeds Bitcoin, Ethereum and Solana in Q3
The Tron network (TRX) generated the highest revenue in the third quarter since its inception, outperforming leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin finds support around $60,000
Bitcoin is hovering around its key support level; a sustained close below this threshold could signal further declines. On the other hand, Ethereum and Ripple have closed below their critical support levels, indicating further downsides.
Bitcoin: Is BTC sell-off over?
Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs. BTC bulls seem to be holding strong at a critical support level.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.