Bitcoin trend analysis – BTC struggling amid downtrend as price holds $35,000

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As miners shift the entire narrative of Bitcoin trend analysis, the price hovers around the recent lows. After crossing the $40,000 mark, Bitcoin price is now facing excessive selling pressure as bulls take a retreat back into the safe zone. The prolonged correction may take Bitcoin trend analysis once again into the bearish territory.

Bitcoin price movement in the last 24 hours reflects the consolidation

Bitcoin approached $31,000 in a bid to end the correction phase. At the time of writing, the price hovers around $34,000 and has recovered into the Bollinger Bands zone. The sharp recovery has come on the backdrop of a sharp downturn that threatened the loss of weekly gains. However, the bears are in no mood to let go as the price is still following a downward sloping channel.

Any aggressive buying phase can be met with an equally strong selling spree by the bears. The 20-day EMA at $32,000 has been able to hold the price on the hourly charts. The next immediate support lies at $30,000, where the 38.2 percent Fibonacci level will give much help to the bulls.

A rebound from the current lows can trigger a slight uptrend that may take the price above $36,000. The extension of such a correction into a bull rally will happen if institutional buying happens aggressively. The bulls will be eager to restart the uptrend and take the price above $38,000 to target fresh all-time highs.

BTC/USD 4-hour chart – Short term bearish clouds take over price action

Bitcoin trend analysis – BTC struggling amid downtrend as price holds $35,000 2
Bitcoin price chart by TradingView

Bears are currently in the driving seat as the pair has broken past key support levels on the hourly charts. The ongoing bullish rally on the daily charts is under threat from the Bitcoin trend analysis’s current predicament. The pair may fall below other key support levels that mark the daily bull run.

The fantastic run-up to the $42,000 highs has shown the potential BTC holds in store. However, the price volatility is evident in the recent correction. Bitcoin trend analysis shows that the price has come down by around 18 percent in the present downturn.

Technically, the RSI is now under 50 and very much in the bear zone. MACD is also showing a similar trend. Therefore, any bull run has ample room to take the price upwards. The quick drop in the price will undoubtedly attract HODLers who will look to accumulate at the current price. Most of the recent gains have been wiped out in the present downturn making traders jittery.

Bitcoin trend analysis – BTC struggling amid downtrend as price holds $35,000 3
Source: HashRateIndex

In the hourly setup, traders are looking to square-off margin calls and stop further purchases until the picture becomes clear. The demand-supply disruption can trigger another short-term downtrend on Bitcoin trend analysis.

Why are BTC miners selling?

Ever since block reward halving, the miners were looking for an opportunity to take profit. The recent high of $42,000 is perhaps the right time to reap long-term benefits in the BTC price rise. The unmatched selling has so far not sparked buying interest in the buyers. Both exchanges and miners can be jointly attributed to the current selling pressure.

There has been a notable surge in the Miner Position Index. The fall mimics the downtrend witnessed back in 2019. Short term Bitcoin trend analysis shows that miners would continue to build selling pressure for the next few days. Also, the overbought technical indicators will tone down as the BTC price comes down.

However, once the MPI top is put in place, miner selling will subdue, and the price will start stabilizing. The short-term traders can look for some scaping opportunities in the current setup. Any long-term bearish view can backfire if the appropriate stop-loss is not put in place. Correction is going to be short-lived in Bitcoin trend analysis. The institutional buying will likely help BTC regain its current all-time high levels.

Bitcoin trend analysis – Bearish short term outlook

Traders must refrain from taking excessive short positions with leverage. The current downtrend won’t persist for long as technical indicators, and the broader crypto market perspective is positive. The price isn’t likely to go below the psychological support at $30,000. Such a fall will likely bring bulls back into the picture.

Strong buying support is being observed at $32,000, where chances of price recovery are high. Considering the recent pullbacks from the lows, Bitcoin price will surely turn this downtrend into another buying opportunity. The possibility of a 30 percent pullback is very less. If the price closes above $34,000, bulls will start emerging from the shadows, albeit with a slower momentum.

Source: cryptopolitan.com

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