Bitcoin Rejects Downside At $29k, Here’s Why This Is Good

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Today’s Bitcoin price analysis is positive, as a drop to $ 29,000 has been met with solid support and rejection, indicating that a further downside is unlikely. As a result, BTC / USD is expected to rise in the coming days, most likely above the resistance level of $ 31,000.

Naturally, the psychological price of $ 30,000 for Bitcoin implies a solid buying zone. We’ll look at why the recent consolidation of Bitcoin around $ 30,000 is a promising sign of future price increases.

Bitcoin Falls 57% ATH

Bitcoin prices have fallen from a high of $ 69,600 to a current level of $ 29,350. The entire cryptocurrency market has been devastated by this 57 percent price decline. As a result of the declining prices, a snowball effect began to occur, causing other crypto projects to be hit and sunk even further.

The $ 30,000 price range for Bitcoin is critical. Many large corporations bought Bitcoins at that price. In addition, as shown in Figure 2, Bitcoin prices have historically firmed around those exact positions before a breakthrough began.

Bitcoin

BTC/USD 1-day chart showing the consolidation area. Source: TradingView

For more than a week, bitcoin has been trading sideways, with the $ 31,000 mark acting as solid resistance. Meanwhile, significant support has been set at $ 29,000, signaling a clear consolidation region that needs to be overcome before the market can continue to develop.

The previous high was set at the same level as the previous low, signaling market hesitation. As a result, the recent $ 29,000 attempt could lead to another retest of the resistance.

Related Reading | Eight Consecutive Red Closures: Is Bitcoin Coming to Recovery?

Will there be a consolidation?

If BTC prices fall below $ 28,000 again, the next support area would be around $ 20,000. However, it is more likely that prices will rise from this Bitcoin price consolidation phase. The first target is around $ 35,000, or a 17% increase in prices. After that, prices should target the next psychological price of $ 40,000. From there, we may see a slight adjustment lower, but in the long run, prices should break higher. This would mark the official beginning of the superintendence.

In order for the price of bitcoin to set a foothold at the bottom soon, according to Josh Olszewicz, head of research at Valkyrie investment management, volatility must be reduced.

“We can look at things like the 200-week moving average, which is about $ 22,000. We can look at a realized price, which is the average price of currencies that have moved on the chain, which is about $ 23,800,” Olszewicz said in the program. First Mover “from CoinDesk TV. “This [movement to hit bottom] will probably take at least the whole of Q3, maybe also Q4, if it happens this year. “

Other variables, such as the US Federal Reserve boosting interest rates, also affect bitcoin’s market share, according to Olszewicz.

He speculated that institutional investors may be at the forefront of the downturn. The average size of online transactions, according to Olszewicz, is in the tens of thousands of BTC.

However, according to Olszewicz, ordinary traders continue to influence market movement more than institutional investors. Those who learn about cryptocurrencies are now jumping during this bear market to “test the waters” and “see if they can survive,” according to him.

Suggested Reading | Ripple (XRP) Dives To $ 0.43 With Bears In Full Swing

Featured image from iStock photo, chart from TradingView.com

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