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Bitcoin Price Analysis: Small Steps Towards $40,000

The stability in the Bitcoin market has been evident during the past weekend, with small positive steps in the chart.
Bitcoin Price Analysis for 31.01.2022

Bitcoin Price Analysis: BTC / USD – General Overview

The stability in the Bitcoin market has been evident during the past weekend, with small positive steps in the chart. The price climbed from $35,000 to $37,700 in a week, indicating that there are minor sell orders in the market, letting the price grow at minor rates.

 

The most probable scenario in this situation is the sustainability of the consolidation zone from $32,000 to $40,000. This mid-term scenario will be confirmed if the price found the same support and resistance points. In the next days, a positive development for the Bitcoin market will be a climb to $40,000, where more resistance will become evident. If the price manages to reach this point, another discussion for a potential return in the bullish market. But this is too early for now.

 

The scenario that gathers the better probabilities will be a return in the $35,000 average point, marking that there is little or no momentum on the bullish side. The lack of momentum will be crucial when the market will be ready to pass on to the next stage. Until then, we should the fundamentals do the dirty work and establish better positions in the charts.

 

From a technical perspective, the inverted triangle doesn’t have any sure follow-up in the charts rather confirms our analysis. This means that the if trend follows the upper line, the price will sooner or later land around $40,000. If the price corrects in the next few days, the triangle will become the base for $35,000. In any case, there are little things we can do on the mid-term positioning, other than waiting for the next breakout move.

 

The moving averages have been positioned in the bearish formation, showing that nothing has changed so far. The trading volumes calm down since last week, showing that investors are looking for the next move in the market, staying rationale for now.

 

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

To address is the question: Is the bear market over?

Is the Bitcoin bear market over?

 

Well, the market data and technical analysis indicate that the major part of the bears have eaten as much as they can so the bears’ belly is full of meat. The fact that many investors have entered the market above the $35,000 zone, means that they will try to hold the positions and not sell them with loss.

 

The most important part is that the first major institutional money flew in the Bitcoin market at $29,000 – $30,000, so the market depth above those points has been increased dramatically since 2020, delivering constant trends above the $30,000 line. The expectations, for now, will be a possible sudden drop to $30,000 and a reactive spike back in the consolidation zone, ending the bearish feelings for this period.

Bitcoin / US Dollar: Short Term Overview

Observing the short-term window in the Bitcoin Price Analysis, we can see that the inverted triangles lead to more and more corrections during the last period. If the market expectations lay on the same ground, we should expect a minor correction to $36,000 or even $35,000 in the next few days.

 

This minor correction will again be followed by another minor jump to $38,000, shaping the next phase in the Bitcoin market. The decreased volatility is also adding power for the next phase in the Bitcoin market. This added power will become the catalyst for the next bullish phase and how fast it will grow in the current 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 Overview

The situation looks more familiar in the day trading perspective of the Bitcoin market in this Bitcoin Price Analysis, as the price seems to grow seamlessly during the last hours. As we have noted and highlighted in our previous articles, in a consolidating situation, the price is subjected to several fluctuations from a certain point to a certain point, allowing day traders to exploit that situation.

 

We expect that the market will correct at minor steps towards the $36,000 in the next hours, creating another profitable window on the bearish side, which will not be long-lived. If this situation continues to thrive in the Bitcoin market, you should be more than sure that a new trend will be established in the next period.

 

How quickly this will become a reality, will be determined from the market dynamics and how strong new adoption will be from the institutional side.

 

Bitcoin / US Dollar: Day Trading View
Bitcoin / US Dollar: Day Trading View in Bitcoin Price Analysis, image from Tradingview

Bitcoin / US Dollar: Indicators

MACD (Moving Average Convergence Divergence) index passed on the “green” side, indicating that the market has made enough efforts to build another trend, even a minor one, in those days. As we have seen in the previous weeks and previous Bitcoin Price Analysises, the ups and downs in the market structure and the accompanying momentum has played a minor role in the price development.

 

The RSI (Relative Strength Index) index moved to value = 36, indicating that the market remains low for the moment and the expectations for the long-term are still on the bullish side. We believe that the market is perfect now for more purchases as the correction has amounted to 50 %. This correction would match the previous situation in the bearish market and the expectations for the long-term are on the bullish side.

 

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

Bitcoin Price Analysis: Conclusions

The Bitcoin market has been continuously consolidating around the $35,000 point, taking small steps towards the $40,000 point, the major resistance point at this moment. In the short-term window, there would be much more “fight” in the meantime.

 

We expect that more ups and downs will be evident in the next days, revealing more bright aspects about the price development, especially when there are multiple trades in the same price range.

 

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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