It appears that Bitcoin bears nowadays are busy trapping the bulls at a higher price. As the price after a slight rise falls down drastically and takes significant recovery time. Now when the BTC price was very close to hitting $50,000, the bears dragged the price to as low as $42,800. No doubt the bulls quickly jumped in to hold the price tight, but the attempts may go in vain as Bitcoin is now primed to slide down below $40,500 very soon.
Bitcoin (BTC) Price Analysis
The flagship crypto ever since the beginning of the year 2022, has been notably volatile that compelling the price to hover in either of the directions. However, despite decent volatility, the price failed to hit $50,000 and also secure levels above $48,000. And hence it may also be said that the BTC price was trending within a bearish trend and displaying fake breakouts at regular intervals. Currently, Bitcoin is hovering in a very crucial phase where-in a strong breakdown towards $40,000 is pretty much possible.
- Bitcoin after consolidating hard within $46,800 and $45,000 for quite a long time dropped hard slicing through the crucial support at $44,700
- After bottoming hard at $42,800, the price flipped but failed to ignite a strong uptrend and hence began consolidating within minor ranges
- Hence forming a bearish flag, the price is attempting a breakout, but woefully, the lower levels close to $40,700 may act as the target once the price releases itself from the pattern
- However, $42,000 is yet another barrier that compelled the price to reverse its trend on hitting these levels hence a minor possibility of a flip may be expected but with strong downward pressure, the price may slice through these levels too.
Bitcoin (BTC) Technical Analysis
Technical Indicators
| Indicator | Value(Short-Term) | Action (Short-Term) |
| Relative Strength Index(ADX) | 49.08 | Neutral |
| MACD | -92.7 | Sell |
| Average Directional Index(ADX) | 15.69 | Neutral |
| Average True Range(ATR) | 222.56 | Less Volatility |
| Bull-Bear Power | -8.29 | Sell |
Pivot Levels
| Pivot Levels | Value (Short-Term) |
| Moving Average(MA) – 50 | $43,868.30 |
| Moving Average (MA) – 200 | $45,618.20 |
| Resistance | $44,710 |
| Support | $42,000 |
Bitcoin price may consolidate for a while as no particular sign of a flip or rebound with strong bullish momentum is seen. The indicators are also pretty neutral indicating an accumulation phase. Currently, the bears are dominating the rally and interestingly, the long term forecast also manifests a similar trend. And hence once the BTC price breaks down the immediate support at $42,000, the bear may become proactive to drag the price closer to $40,000.
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Source: https://coinpedia.org/price-analysis/bitcoin-price-to-slide-down-to-41500-by-the-end-of-the-week/