- 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
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.