Skip to main content

Bitcoin (BTC) At $29,000, How Long Will The Consolidation Continue?

Bitcoin remained consolidated over the last 24 hours, altcoins however, have dipped on their charts. Over the last week, the king-coin continued to register lateral price movements on the charts. Ever since November, 2021, price of Bitcoin has consistently moved on the downside.

On the longer time frame, Bitcoin has continued to show signs of upcoming bearishness. On a comparatively, shorter time frame the king-coin might be hinting at a price reversal.

Over the last 24 hours BTC made no gains. In the last week, it lost about 2% as the coin was mostly consolidating. Currently, BTC is sandwiched between $28,000 and $29,000 as those two levels have been acting as the coin’s crucial demand zone.

The buyers seem to have clearly given up on the initiative to lead the price action and with continued strength from sellers, BTC might be eyeing the $20,000 price level.

Bitcoin Price Analysis: One Day Chart Bitcoin was priced at $29,000 on the one day chart | Source: BTCUSD on TradingView

BTC was priced at $29,100 at the time of writing. The coin had formed a descending channel ever since November 2021 highlighting an extended bearish phase. The coin has touched $69,000 in the month of November, which is considered the all-time high for the coin.

Currently price of BTC is laterally trading between $29,000 and $28,000. A fall below which can push price of the coin to as low as $19,000. Overhead resistance for the coin stood at $30,000 and for bearish thesis to be invalidated BTC needs to trade above $31,000.

Broader market strength and buyers will be required in order to BTC to move northwards on its chart.

Technical Analysis Bitcoin registered a rise in buying strength on the four hour chart | Source: BTCUSD on TradingView

Bitcoin’s short term time frame looked optimistic pointing towards a price reversal on the charts. The coin formed a descending wedge pattern on the chart (yellow).

A descending wedge pattern is related to a trend reversal and that can be considered bullish for BTC. Usually after a period of consolidation, explosive price actions are often due.

On the Relative Strength Index, the indicator climbed and reached the 50-mark which meant buyers were returning in the market. This signified positiveness in the market.

Price of BTC was still under the 20-SMA which meant that sellers were still driving the price momentum. An increase in buying strength can push BTC above the 20-SMA line.

Related Reading | Bearish Indicator: Is Bitcoin Headed For Its Ninth Red Weekly Close?

Bitcoin flashed buy signal on the four-hour chart | Source: BTCUSD on TradingView

Technical outlook on the four hour chart all point towards a price reversal. The Awesome Oscillator dictates the price momentum in the market. AO flashed green histograms which is also tied with a buy signal which reaffirms the readings on the RSI.

The Bollinger Bands displays price volatility in the market, and if the bands are tight and constricted and period of price volatility could be expected. This could mean that over the upcoming trading sessions BTC might aim to rise above its immediate resistance level provided broader market and buyers extends support.

Related Reading | Ethereum Slips, What Are The Next Vital Trading Levels For The Coin?

 



from NewsBTC https://ift.tt/7qQvl1T
via IFTTT
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

DeFi isn’t dead, it just needs to fix these 3 critical problems

It’s been a rough year for DeFi, and it may not get any better until projects focus more on security, regulation and usability. The persistent challenges  decentralized finance  face have been well documented by a handful of analysts and the recent collapse of the Terra ecosystem re-enforced the fact that something is critically wrong with DeFi. I think DeFi today is completely broken for 99% of the population. The promise of a more transparent financial system has been overtaken by greed. UST/LUNA is just the latest in a string of bad developments: — Peter Yang (@petergyang) May 11, 2022 Let's take a look at what experts say DeFi needs to do in order to have another revival.  Improved usability To date, the promise of open and uncensored access to a global decentralized financial system has been largely hampered by the complicated interface, confusing multi-step staking processes and lack of clarity surrounding the yields on various tokens. What do you thi...
Post a Comment
Read more

ENS DAO delegates offer perspective on DAO governance and decentralized identity

AlphaWallet CEO and Spruce co-founder talk about their roles as contributors to the Ethereum Name Service following the project's recent airdrop. Earlier this month, the Ethereum Name Service, or ENS, formed a decentralized autonomous organization, or DAO, for the ENS community.  Cointelegraph spoke to two ENS DAO delegates who applied for the opportunity to represent the community and stay involved in the decision making process: Victor Zhang, CEO of AlphaWallet, an open source Ethereum wallet, and Gregory Rocco, co-founder of Spruce, a decentralized ID and data toolkit for developers. Zhang spoke about his experience as an external contributor to ENS and an early supporter since 2018. Zhang initially sought to help ENS by offering Alpha Wallet as a user-friendly tool for  resolving .eth names and cryptocurrency wallet addresses. Essentially, if a user inputs an .eth name in the AlphaWallet, it will show the wallet address, and vice versa using reverse resolution. Alpha...
Post a Comment
Read more

Institutional demand for crypto isn’t subsiding, but impact will be gradual

As another $2-trillion stimulus package looms in the U.S., institutions will continue to look at BTC as a hedge against inflation. For example, just last week, when the currency was hovering around the $30,000 threshold, a whole host of pundits was warning investors to brace for impact, suggesting that the premier crypto asset was on the verge of a correction and could once again dip to around the $20,000 region. However, in just one day, Bitcoin was once again playing with the bulls, retesting the $38,500 limit, only to witness a selloff and eventually settle around the $33,500 region. While for most crypto veterans that might have been another day at the office, others branded the upsurge as “Elon’s Candle,” which relates to Elon Musk, the CEO of Tesla, who included “Bitcoin” in his Twitter bio as well as sent out the following cryptic message “in retrospect, it was inevitable” to his 40 million-odd followers online. Regardless of the cause, has the recent price volatility sca...
Post a Comment
Read more