The Bulls had a good first half of last week. BTC/USDT reached a high near $ 40,818 on Wednesday, after which the bulls' ardour began to dissipate and the bears grabbed control. It struggled to get higher on Thursday, but under the attack of bears on Friday, the price sank to $ 35,122, and it was as low as $33,863 on Saturday.
Bitcoin is currently trading around $ 35,229, and it appears that the Bulls are attempting to recuperate, preventing the price from falling below the support level. However, the possibilities of a support level collapse and another upward bounce are nearly equal. The possibility of a long struggle for trend direction is also not ruled out; in that case, the price may go sideways.
So far, the latest Bitcoin developments cannot be classified as the start of a crypto winter akin to the ones that occurred in 2014 and 2018, but there are some parallels. And some investors' concerns about this are not unwarranted.
The continuous war in China against cryptocurrency mining and trade is putting pressure on the Bitcoin market. For example, the 8 points in the document released by the Commission for Reform and Development of Inner Mongolia can help you understand how this happens. (According to research from the University of Cambridge, this region has the third most bitcoin computer power in China.) One of the main causes for the recent dramatic drop in bitcoin price is China's restriction on bitcoin mining.
But there was also positive news. Elon Musk, who recently struck several blows on Bitcoin, can now contributed to its recovery. Joining hands with MicroStrategy CEO Michael Sailor, Elon Musk talked to a number of North American mining companies and decided to form the Bitcoin Mining Council, which aims to reduce the industry’s greenhouse gas emissions.
However, according to one of the first bitcoin miners Marshal Long, if the billionaire wants to change the situation, he should negotiate with Coinmint and members of the non-profit organization The Texas Blockchain Association, which control about 15% of the hash rate.
Be that as it may, but the decision to create the Bitcoin Mining Council had a positive result on the total capitalization of the crypto market, which brought a 14% grown to bitcoin price.
Technical Analysis
So far, neither the daily nor the weekly charts indicate the end of the correction and the recent round of price growth, it may be just a respite before the bearish movement continues. But if the price breaks below $30,000, then most likely it will not last long and will soon rebound, which can be considered as a possible reversal of the bearish trend.
On the weekly price chart, it can be seen that the price. bounced back soon after hitting the support level, and the bear still rules the market. The histogram of the MACD also gives a bearish signal, while the RSI indicator has not yet reached the oversold level, which also indicates that most likely the bottom has not yet been reached.
On the daily price chart makes it clear that in the coming days, the Bulls can re-engage in the struggle. The histogram of the MACD is trending to cross from the negative to the positive zone, and the RSI indicator just crossed the lower border from the bottom up, which is also a Bullish signal.
Support: $34,800, $33,500, $30,500
Resistance: $36,800, $38,000, $40,500
Disclaimer
The material herein is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell cryptocurrencies or derivatives. The material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate investment strategies depend upon the client’s investment objectives.