Bitcoin Price Prediction: A bullish reversal is Brewing
The first half of last week was good for the Bulls. On Wednesday, BTC/USDT reached its maximum near $ 40,818, after which the Bulls’ enthusiasm began to fade and the bears took the initiative. On Thursday, it struggled to go higher, but on Friday, under the onslaught of bears, the price dropped to $ 35,122, and Saturday’s was as low as $33,863.
At the moment, the price of Bitcoin is $ 35,229 and it looks like the Bulls are again trying to recoup, preventing the price from dropping below the support level. However, the chances of both a breakdown of the support level and another upward bounce are almost equal. The option of a long struggle for the direction of the trend is also not excluded, then the price may move to a sideways movement.
So far, the latest developments with Bitcoin cannot be called the beginning of a crypto winter, similar to the one that was in earlier in 2014 and 2018, but there are still some similarities. And the worries of some investors about this are not so unfounded.
The Bitcoin market is under pressure from the ongoing struggle against mining and trading in cryptocurrency in China. You can understand how this happens, for example, from 8 points of the document published by the Commission for Reform and Development of Inner Mongolia. (According to data from the University of Cambridge, this region is the third in China in terms of the amount of bitcoin computing power).China’s ban bitcoin mining is one of the major reasons for the sharply decline of bitcoin price recently.
But there was also positive news. Elon Musk, who recently struck several blows on Bitcoin, can now contributed to its recovery. Joining hands with MicroStrategy CEO Michael Sailor, Elon Musk talked to a number of North American mining companies and decided to form the Bitcoin Mining Council, which aims to reduce the industry’s greenhouse gas emissions.
However, according to one of the first bitcoin miners Marshal Long, if the billionaire wants to change the situation, he should negotiate with Coinmint and members of the non-profit organization The Texas Blockchain Association, which control about 15% of the hash rate.
Be that as it may, but the decision to create the Bitcoin Mining Council had a positive result on the total capitalization of the crypto market, which brought a 14% grown to bitcoin price.
Technical Analysis
So far, neither the daily nor the weekly charts indicate the end of the correction and the recent round of price growth, it may be just a respite before the bearish movement continues. But if the price breaks below $30,000, then most likely it will not last long and will soon rebound, which can be considered as a possible reversal of the bearish trend.
On the weekly price chart, it can be seen that the price. bounced back soon after hitting the support level, and the bear still rules the market. The histogram of the MACD also gives a bearish signal, while the RSI indicator has not yet reached the oversold level, which also indicates that most likely the bottom has not yet been reached.
On the daily price chart makes it clear that in the coming days, the Bulls can re-engage in the struggle. The histogram of the MACD is trending to cross from the negative to the positive zone, and the RSI indicator just crossed the lower border from the bottom up, which is also a Bullish signal.
Support: $34,800, $33,500, $30,500
Resistance: $36,800, $38,000, $40,500
Disclaimer
The material herein is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell cryptocurrencies or derivatives. The material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate investment strategies depend upon the client’s investment objectives.
