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Bitcoin Price Analysis: The Market Watches Out for More Stability

As we stated in the previous Bitcoin Price Analysises during this week, the Bitcoin market will follow a stabilizing trend around the $35,000 point.
Bitcoin Price Analysis: The Market Watches Out for More Stability

Bitcoin Price Analysis: BTC / USD – General Overview

As we stated in the previous Bitcoin Price Analysises during this week, the Bitcoin market will follow a stabilizing trend around the $35,000 point. This stability will shape the next trend and enable the market to pass on the next level, before taking a short break.

 

The price is climbing at minor steps, moving at $37,000 today but the bitter truth is that there would be a need for sudden and breakthrough moves if the Bitcoin market wants to establish the next bullish trend. The mid-term scenario for the Bitcoin market will be a more consolidating zone and a sudden breakthrough move, that will fly the price to new levels.

 

Until then, the market will probably follow the previous support and resistance points at $32,000 and $40,000 respectively. If the price moves towards different points, we could see another price development action with different touchpoints, which will be determined from the price action.

 

Another dimension that we should take into consideration is the overall time that the market will stay in the consolidation zone. The previous consolidation zone lasted for 2 months (June and July 2021), passing into the second consolidation zone between $40,000 and $48,000 for another 2 months (August and September 2021). If the current consolidation move lasts for another 2 months, the pattern will be probably repeated as the dynamics have not changed.

 

If the consolidation phase lasts for less than two months, the expectations for a new all-time high level will be skyrocketed as the market will have more dynamics than ever. The momentum is crucial also for this action but there are minor regards about how possible is that.

 

The moving averages have still held a bearish position, showcasing that the market is not ready yet for an uptrend. Again, the consolidation scenario is approved, taking into consideration that multiple indicators lead us to this result.

 

The trading volumes have been skyrocketed during this week, indicating a war between bulls and bears has made the market fragile to the slightest point. The high trading volumes indicate that the market is hot and multiple trades happen over and over, trying to establish bullish or bearish positions over the short-term period, that will be exploited in longer time frames.

 

At this point, we should also point out that the crypto market seems to be correlated with the traditional stock market, which also experienced heavy losses over the past week, eliminating profits from the entire 2021. This correlation shows us that we should also include in our Bitcoin Price Analysis, what is happening in the financial world, with no exclusions or narrow-minded ideas. The crypto market is not alone anymore and we should be prepared for that.

 

Bitcoin / US Dollar: General Overview
Bitcoin / US Dollar: General Overview in Bitcoin Price Analysis, image from Tradingview

Bitcoin / US Dollar: Short Term View

In the short-term window of the Bitcoin Price Analysis, we can observe that the market is taking small steps after the $35,000 rebound and tries to build a small bullish line, climbing to $37,000. The ultimate goal for the short-term period is to gain the $40,000 level and build more efforts above that.

 

The next bullish trend will be as strong as the short-term fundamentals will be. This means that a quick recovery and a sustainable trend above the $40,000 line will bring the market to new high levels.

 

Apart from that, increased trading volumes will give an advantage in the current situation for the bulls, advancing them faster in the next phase.

 

Bitcoin / US Dollar: Short Term View
Bitcoin / US Dollar: Short Term View in Bitcoin Price Analysis, image from Tradingview

Bitcoin Price Analysis: BTC / USD, Day Trading View

The day traders should be more than happy in this situation as it gets more and more predictable for them. The price tends to return to the $35,000 point after some hours of floating at higher or lower levels.

 

This means that the market has no thoughts, for now, to climb or drop from the consolidation point at $35,000, so any move towards either direction will have increased probabilities to return to the abovementioned point.

 

The expectations have been laid on the same spot for the next days or hours and the investors will look to exploit every piece of the market regarding short-term volatility.

 

BTC / USD: Day Trading View
BTC / USD: Day Trading View in Bitcoin Price Analysis, image from Tradingview

Bitcoin / US Dollar: Indicators

MACD (Moving Average Convergence Divergence) index has remained in the “red” area but the momentum seems to increase since the local bottom at $35,000. This means that there is a scenario with minor probabilities when the Bitcoin price can boost its bullish trend with smaller steps rather than a breakout move.

 

In this Bitcoin Price Analysis we should take notes on the MACD development as the momentum will be one of the most crucial factors in the Bitcoin price actions for the short-term future.

 

The RSI (Relative Strength Index) index moved back to value = 30, indicating that the market will try to pass on the next level, consolidating more power and preparing investors for the next phase. Many analysts believe that this is the end of the bearish situation but we have to be careful about what will take place in the next few days.

 

This is evident from the high trading volumes, which are not correlated with major price actions. This means that both sides are making trades and trying to dominate the market, without much success.

 

Bitcoin / US Dollar: Indicators
Bitcoin / US Dollar: Indicators in Bitcoin Price Analysis, image from Tradingview

Bitcoin Price Analysis: Conclusions

The equilibrium between bulls and bears has led the market into a stability zone around the $35,000 point. This means that the Bitcoin market is consolidating powers and getting prepared for the next moves.

 

The short-term goal for the $40,000 point remains on the front page but investors seem to be concerned for now. Day traders can exploit the $35,000 “return to average” strategy and claim some quick profits in the spot market. The next days will be interesting regarding the price development and how this situation is affecting the entire crypto market.

 

Read our previous Bitcoin Price Analysises here!

George Foroglou

George Foroglou

George Foroglou heard first time about Bitcoin in a Christmas dinner in December 2013. As Finance student, he published articles regarding Bitcoin adoption, blockchain applications and IoT monetization strategies. From 2017, he is an active trader in the Bitcoin and other altcoins market, using mostly Technical Analysis. He has worked for plenty web portals, giving insightful articles about technical and fundamental analysis.

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