Bitcoin Rejects Downside At $29k, Here’s Why This Is Good
25 Mai 2022 - 04:09AM
NEWSBTC
Today’s Bitcoin price analysis is positive, as a dip to $29,000 was
met with solid support and rejection, indicating that additional
downside is unlikely. As a result, BTC/USD is expected to rise
further in the next days, most likely above the $31,000 resistance
level. Naturally, the psychological price of $30,000 for Bitcoin
implies a solid purchase zone. We’ll look at why Bitcoin’s recent
consolidation around $30,000 is a promising sign of future price
increases. Bitcoin Fall 57% From ATH Bitcoin prices have fallen
from a high of $69,600 to a current level of $29,350. The entire
cryptocurrency market was destroyed by this 57 percent price
decrease. As a result of the decreasing prices, a snowball effect
began to occur, causing other crypto projects to be hit and sink
even more. The price range of $30,000 for Bitcoin is critical. Many
large corporations bought Bitcoins at that price. Furthermore, as
shown in Figure 2, Bitcoin prices historically consolidated around
those precise positions before beginning an advance. BTC/USD 1-day
chart showing the consolidation area. Source: TradingView For more
than a week, bitcoin has been trading sideways, with the $31,000
mark acting as solid resistance. Meanwhile, significant support has
been established at $29,000, signaling a clear consolidation region
that must be overcome before the market can continue to develop.
The previous high was set at the same level as the previous low,
signaling market hesitation. As a result, the recent $29,000 test
could lead to another retest of the resistance. Related Reading
| Eight Consecutive Red Closes: Is Bitcoin Headed For A
Recovery? Will Consolidation occur? If BTC prices happen to drop
below $28,000 again, the next support area would be around $20,000.
However, it is more likely that prices will increase from this
Bitcoin price consolidation phase. The first target is around
$35,000, or a 17% increase in prices. After that, prices should
target the next psychological price of $40,000. From there, we
might see a slight adjustment lower, but in the long term, prices
should break higher. This would mark the official start of the
uptrend. In order for bitcoin’s price to establish a foothold at
the bottom in the short term, according to Josh Olszewicz, head of
research at investment management Valkyrie, volatility must reduce.
“We can look at things like the 200-week moving average, which is
around $22,000. We can look at realized price, which is the average
price of coins that have moved on-chain, which is around $23,800,”
Olszewicz said on CoinDesk TV’s “First Mover” program. “This
[movement to hit bottom] will probably take at least all of Q3,
perhaps Q4 as well, if it were to happen this year.” Other
variables, like as the US Federal Reserve boosting interest rates,
are also influencing bitcoin’s market performance, according to
Olszewicz. He speculated that institutional investors may be in the
forefront of the downturn. The average size of on-chain
transactions, according to Olszewicz, is in the tens of thousands
of BTC. Nonetheless, according to Olszewicz, ordinary traders
continue to influence market movement more than institutional
investors. Those learning about cryptocurrencies are now jumping in
during this bear market to “test the waters” and “see if they can
survive,” according to him. Suggested Reading | Ripple (XRP)
Plunges To $0.43 With Bears In Full Swing Featured image from
iStock photo, chart from TradingView.com
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