According to Bloomberg, some key indicators have revealed that Bitcoin price may be losing steam. This can only mean that the digital currency could be expecting a downward movement. Will bitcoin recover?
Bitcoin (BTC) Price Today – BTC / USD
According to the report, “Technical gauges signaling long-term buying demand for Bitcoin are deteriorating” this means that buying pressure may increase. Also, the report notes that bitcoin price’s Moving Average Convergence Divergence indicator has been on a downward movement since February this year.
This MACD shows the relationship between 2 moving averages of a security’s price.
Bitcoin price live
BTC has surged to the $4,000 mark a few times this year. Sadly, the top digital currency has been unable to stay afloat for a long time. Bloomberg analyst, Mike McGlone believes that bitcoin price will face serious selling pressure if it is unable to break above that level.
“The entire industry is ripe to resume a path to lower prices. Conditions are akin to November , just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting.”
Industry experts also believe that investors may be bypassing bitcoin and moving their money into altcoins. Mati Greenspan, a senior market analyst from EToro, said:
“It’s just that investors are seeing more potential in some of the smaller tokens at the moment. As we approach the culmination of the crypto winter, we’re actually seeing some of the altcoins delivering spectacular gains in the last few weeks. We are now in what industry insiders like to call alt-season.”
Reports from TradingView also show that the MACD of bitcoin is at 44.3. This points to a sell recommendation. There was a brief surge in price by 0.48 percent according to CoinMarketCap.
Bitcoin Price Analysis
Yesterday, bitcoin price saw a downside reaction. The digital currency moved below the $3,860 support level. The BTC/USD pair was able to test the key support level at $3,800. Later on, bitcoin price started an upside correction. At the $3,801 level, a swing low was formed, and bitcoin price corrected again above $3,850.
This recovery faced some resistance at the $3,880 level as well as the 100-hour SMA. The important takeaway from this is the key bearish trend line which is placed with the resistance level at $3,865. The BTC/USD pair struggled to clear the Fib retracement level as well of 61.8%. Presently, bitcoin price is consolidating below the trend line of $3,870,
Will bitcoin recover?
This question is on the minds of all bitcoin enthusiasts and potential investors alike. Everyone wants to know if the digital currency can bounce back and maybe reach levels it did in 2017. In the short term, however, a successful break above the chart’s trend line to $3,880 may boost the sentiment of the market.
Bitcoin price may climb above the resistance levels of $3,900 and $3,920. After this, the next stop may be the $4,000 levels if all goes well. On the other hand, if the price dips to $3,840, it may find buyers. It may still be in the bearish zone if there is a downside break below $3,800.