Bitcoin price analysis turns bearish as price hovers near crucial support at $30,000. MicroStrategy has bought $489 million worth of Bitcoin during the recent dip. Wedge bearish pattern emerges on Bitcoin charts that is a cause of worry. BTC/USD touches a low of $31,160 amid a build-up of selling pressure
Bears are ruling the BTC/USD charts as the pair looks set to touch fresh new lows near the $30,000 support zone. The BTC price has crashed from $34,629 to reach $31,160 intraday low. The current market has excess selling pressure, which is evident from the RSI reading of 32. If the bears can pierce through the $30,000 level, the price can touch $25,000.
Bulls are looking for cover as the technical indicators sound multiple sell signals according to Bitcoin price analysis. With most charts in the red, hourly, and daily, the flagship cryptocurrency shows no sign of recovering from a recent downturn. The approximate 10 percent intraday drop threatens to retest critical support region near $30,000 that may induce a long-term Bitcoin selloff.
Bitcoin price analysis shows that unless the bulls can defend the $30K wall in a big way, the buyers won’t be able to meet the onslaught. Large investors and institutional purchases have begun as the price reaches new lows every day. Yesterday, MicroStrategy bought Bitcoin worth $489 million and now boasts $3 billion in BTC holdings.
Bitcoin price movement in the last 24 hours: Bears fully grab the price action
The bearish patterns are all over the daily charts as the price breaks below the key BTC support area near the $32,000 level. The 50-day moving average shows the price moving further to the south and touch the $30,000 region in the next few days. A worrying sign would be the BTC/USD price going under the 200-day moving average line.
Long-term daily charts point to a grave situation where the price is headed towards a $24,000 pivot point courtesy of the falling wedge pattern on the charts. Large institutional investors would be looking to buy even more BTC if such a situation does unfold. The Bollinger Bands are opening up to the downside giving more room to the bears to pile up-selling pressure.
The bearish flag on the lower Bollinger Band comes along with a massive red candlestick pattern. If multiple lower-lows follow the long candle, the price will likely break below $30,000 in the next 24 hours. On the lower side, the first support lies at $28,450 and then at $26,870 region as per Bitcoin price analysis.
The technical analysis of BTC/USD is now lined with multiple bearish signals. The most significant bearish pattern signifying a deeper malaise in the BTC price is the ‘Inverse Cup and Handle’ pattern. Here, Bitcoin price analysis suggests that the price action has built an inverted cup and signifies further correction in the BTC price. The price will rally upwards slightly and then move lower towards deep support regions.
The ‘Inverse Cup and Handle’ pattern is ideal for building short positions. Currently, the pattern is enlarging, which means the pair is turning highly bearish as per Bitcoin price analysis. Add volume to this mix, and a perfect storm awaits Bitcoin price. Almost every technical indicator is reflecting sell theory, and the pair will likely respond in the same direction.
Flurry of negative news engulfs crypto realm
The hawkish stand of the US Federal Reserve has turned all eyes on the interest rate increase in the coming quarters. The rising inflation will pressure the Federal Reserve to revise the interest rate upwards, and the crypto market is also at risk along with the traditional stock markets. Bitcoin price analysis shows that it will also fall in tandem with other global indices and assets. The rise in US Dollar will also negatively affect BTC.
The massive crackdown on Bitcoin mining in China has also sparked a risk aversion approach. As the crackdown intensifies, the crypto community is experiencing decreased hash rate. Thus, a confluence of negative factors is ensuring that the price continues to move south. Whether bulls will be able to defend the $30k wall remains to be seen.