Bitcoin price analysis shows BTC/USD facing intense tug of war. A $6K rebound is not helping matters as BTC struggles near key resistance. Technical indicators are showing neutral readings as traders await clarity. Resistance at $40K beckons the bulls, but the short-term picture remains hazy.
Even as Bitcoin has jumped from $32,000 to $37,500, the bulls are still struggling to cross key resistance at $38,000 on the way to the $40K level. The stagnation near the $37,300 level shows the pair cannot mount volumes to reach critical mass and cross the key hurdles with confidence.
This week, the BTC/USD pair has not seen much action and traded within a range. The support and resistance levels have ensured that the daily charts are not very volatile. The price challenged the lower end of the symmetrical triangle and reached the $31,000 level. The sudden decline repurchased bulls into action to defend the $30,000 support zone. The quick rebound has now bought BTC/USD near the $37,300 level.
The .786 Fibonacci retracement is lying near the $37,630 level and not giving much respite to the bulls. There is support for the bulls near the $36K level allowing for more accumulation action. The candlestick pattern of the last three days has been muted.
The long-term charts show that a reversal pattern is emerging gradually and challenging any bullish action. The repeated failures to cross the $37,650 level also cements this Bitcoin price analysis. The mid-May price action saw the pair slide towards $30,000, where a temporary bottom helped bulls reverse the decline.
However, a contrarian bullish picture is emerging from the daily charts as well. Bitcoin price analysis shows that the $33,000 pivot point is acting as a strong accumulation zone. The bulls are turning the stagnation into another accumulation opportunity to build a bounce back. There is a strong floor formation occurring near the $31,000 mark, which has helped prevent any sharp decline.
A continuation of the ‘lower highs’ pattern on the charts does pose a serious threat to any bullish sentiment. To turn bullish, the BTC/USD pair must close above $39,700. The downtrend will subside only once the pair reaches $40,000 resistance with sufficient volume as per Bitcoin price analysis.
Bitcoin price levels show that there is strong support near the $36,100 and $34,400 levels. On the other hand, there is strong resistance at $37,630 and $39,410. The .382 Fibonacci retracement at $34,490 will prevent any sharp declines and increase accumulation orders. On the lower side, there is more support at $32,465, where the bulls are likely to emerge as solid buyers.
The Bitcoin price analysis of the 4-hour chart shows that the pair is facing severe resistance at $37,630. There are strong chances of a reversal near the same pivot point. The .786 Fibonacci level will bring in more selling pressure on the pair. The .382 Fibonacci retracement level at $40,700 is the level to watch out for as selling pressure increases substantially here.
The technical indicators are mostly neutral, with no apparent bias towards any direction. As per Bitcoin price analysis, the RSI reading of 46 shows a stagnation zone. The recent uptrend took the RSI near 50 levels, and since then, it has retreated. The MACD indicator is also not showing any clear crossover on the hourly charts.
Bears up the ante with selling pressure
Bitcoin is undergoing a stagnation phase with slight hints of a rebound. The knee-jerk reaction took the price above $37,400 for a brief period. The 50-day and 25-day EMA are trading under the price channel. The ascending price channel certainly looks positive for the bulls on the short-term charts.
The 50-day exponential moving average shows another rebound in the making if the pair closes above $37,300. The pair will face selling pressure at $38,000 and then at $39,200, where the bulls will have to bring up volumes on their side.
The fundamental scenario in the crypto realm is fairly muted. Bitcoin price analysis is also looking for directions from the broader crypto market. Technically, the BTC/USD pair must cross the $38,000 resistance and close above it to revive any bullish sentiment.