Despite the little bullish strength, BTC continues to try to prevent further bleeding. To find out what can happen to the price of Bitcoin during the week that is about to begin, he then made a fundamental and technical review of the current situation.
At the time of this writing Bitcoin is trading at $32,800, accumulating a gain of 1.60% in the last 24 hours.
The first thing that seems quite relevant to me to review is a tweet made by the analyst Dilution-proof, in which he analyzes a graph that marks the activity of the whales, telling us that these big participants bought during the recent fall.
Although many tend to focus on sellers when losses occur, the reality is that in the Bitcoin market more are taking advantage of the fall to continue accumulating. They manage to defend the price before the losses drag on too long.
The 65K was not the top of the bull run
Most participants in this market are in favour of the bullish cycle not ending. The rapid increase in the money supply is attracting more and more people trying to protect themselves from what this may cause in the global economy.
In addition, indicators such as the count of deposit transactions in exchanges tell us that we should not think that the highest point of the bull run was reached.
When the price reached an all-time high of $65,000, 64,470 transactions were for depositing coins on exchanges. This figure is quite far from the 216,738 that were made with the top of the bull market of 2017.
It is clear that there is a good bearish direction that is causing problems in the short term. However, things are getting more and more uphill for the bears, as the price is defended above 30K, announcing the possibility that the 60% drop was already enough.
Sales space is shrinking. Again, I do not think it is a very good idea to fight against a bullish force as important as the one that Bitcoin has brought over the last few months.
BTC price technical analysis
When we look at the weekly price chart, we notice the repeated defense of the support zone adjacent to the 30k. This shows seller exhaustion and possibly marks the bottom of the retracement.
From this time frame we see that the resistance that should be traversed to announce a possible resumption of the major trend is at $39,380.
To think of a bearish scenario we have to lose support at $30,420, which would leave the ground clear to $19,359.
Bitcoin levels to watch out for next week
In the daily candlestick chart we see other levels that could influence price behavior, whatever the outcome of the current accumulation.
As I have said in several of my posts, due to positive fundamentals and the good defense of the 30K, I see more likely a bullish escape.
That said, let’s see what levels of support and resistance we should watch for.
With BTC supporting over $30,420, it may be starting at least one recovery, capable of breaking the immediate resistance at $34,663. Even so, as long as the $40,500 resistance is not crossed, we could see new bearish lashes, or even a wider fall.
In case if it is crossed, the space will be cleared to $49,671, but knowing that it can mean the resumption of the major trend, waiting for new historical highs is nothing farfetched.
If support at $30,420 is lost, there will be no more support until approximately $26,281. Below the next support area is the one around $24,000.
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