- Bitcoin price analysis shows muddy price action ahead with more consolidation
- BTC/USD lost 4 percent value last week and is moving in mostly sideways action
- The resistance at $37,800 is not letting the bulls take BTC towards the $40,000 level
- Bitcoin needs to reclaim significant resistance levels to end the consolidation phase
The crypto market is undergoing a stagnant phase where most coins are displaying sideways price action. Bitcoin is trading in a tight range and has been the same for the past week. The sideways price action has led to a gradual decline which wiped off 4 percent value from BTC/USD pair.
The BTC/USD pair needs to reclaim the higher resistance levels at $42,000 so that the buyers see an end of the consolidation phase. However, the price channel is ascending with a slight linear slope, one positive sign for the bulls as they head into the following week. Bitcoin price analysis shows that the buyers need to maintain momentum to sustain the price above $36,600 to rekindle long positions.
After Bitcoin was rejected from $40,760, the pair has been unable to cross $38k confidently. The .382 Fibonacci retracement level is posing a severe challenge to the bulls. The lower limit at $33,500 is proving to be a strong supply zone. Bitcoin price analysis shows that the pair is going to be trading sideways in the next few days.
Bitcoin price movement in the last 24 hours: Sideways drifting leads to nothing
Even though the BTC/USD pair shows a symmetrical triangle pattern, there has not been any breakout in the price yet. The pair is struggling to move past crucial resistance levels, especially near the $39,000 level. The ascending price channel does spark hope, but bulls will have to build massive volumes to move forward.
The symmetrical triangle is also showing weakness during the muted weekend trading. The thin trading volume means that the slope of the price channel is neutralized instead of moving higher. The Bollinger Bands are limiting the price action as per Bitcoin price analysis. The upper boundary of the bands at $37,500 is proving to be a tricky pivot point to cross. The price is repeatedly dropping to lower levels with small green candles.
Looking ahead, the sellers will focus on short-term resistance at $37,100 to build up more selling pressure. Bitcoin price analysis shows the support at 1.414 Fibonacci extension will also help around the $34,750 level. The bulls will have to defend the lower supports at $33,520 and then at the $32,560 level. Technically, the significant support lies at the $30,000 level, which holds the key to the present consolidation phase.
BTC/USD 4-hour chart: Next week price action looks muted
The hourly chart shows that the first resistance lies at $37,980. Here, the bulls will likely lose momentum if they do not have enough volumes. The rising price channel is also threatening to lose steam near the $40,000 level. The .382 Fibonacci retracement at $40,800 will not have much attraction if the bullish breakout loses momentum.
The delayed price action is also evident in most technical major technical indicators. The loss in bullish momentum in the last 24 hours will prove to be a setback for the BTC/USD pair. At press time, the BTC/USD is at $35,950 with a downward bias. The RSI at 43 shows weakness in the pair going ahead.
The failure to reclaim the $43,000 level will create more resistance at the $40,000 level lead to more sell orders. Since the crash, the BTC/USD pair is yet to rise above the $39,500 level as per Bitcoin price analysis. The bullish pressure is increasingly causing more damage to the buy orders which are missing from the market. A false breakout can be more intimidating for the bulls.
Bitcoin price analysis conclusion: $40k is the key to next week’s bull run
The hopes of a confirmed symmetrical triangle pattern may trigger another bull run in the pair. The rapidly cementing negative sentiment can only be avoided once the pair closes above $39,750. Another swing above the $37,600 level can certainly spark more buy orders in a stagnant market.
Bitcoin price analysis shows both bulls and bears are sitting on the sidelines. No major breakout can be concluded from the current price action. So far, the next week looks set for a muted movement in the Bitcoin charts.
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