The bearish cartel has capitulated the entire crypto-space and almost all the assets have dropped significantly. The global market capitalization has dropped more than 11% for the second consecutive day, which is now feared to drop below $1.5 billion, if the plunge continues for another day. In such cases, consolidation appears to be the best option as the buying volume just cannot flip the downtrend.
With the Bitcoin price reaching a 6-month low, around $35,000, after undergoing a serious downtrend for more than 2 months, it’s time now to halt for a while. And hence the area in between $34K to $32K is very crucial. And as believed by one popular analyst, the asset could hold strong at these levels.
Coming to the technicals, the RSI in the HTF is still digging new lows and no specific diversion from the bearish trend is witnessed. On the other hand, both the averages within the MACD have fallen below the average levels ever since the asset jumped down the cliff in November 2021. Currently, with intensified selling volume, the buyers are not in a position to hold the price upright.
Hence if the buyers induce huge volume, then the seller tends to extract the profits very quickly. Therefore, it is better to keep the Bitcoin(BTC) price within the range bound levels until either bears get exhausted or sellers turn into buyers. And this will be when the trend could reverse at a notable extent where-in bear may not hinder the recovery.
Source: https://coinpedia.org/bitcoin/bitcoin-price-to-consolidate-within-34k-32k-in-coming-week-or-drop-below-30k/