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BTC Price Analysis: Despite Naysayers, the $30K Zone Proves Exclusivity, Limited Bitcoin Mining Lacks Positive Effect

Bitcoin
  • The spike in associated investor optimism has already pushed the BTC price up over 14% this week
  • The rally gained momentum after it broke above the daily resistance at $35,000
  • A decrease in the rate of mined coins should have a positive effect on Bitcoin’s price

Bitcoin has been undermined by the outflow of capital to fiat and Altcoins. The risk appetite of those ready to invest, on the other hand, has not waned but has increased. The spike in associated investor optimism has already pushed the BTC price up over 14% this week. Bitcoin’s gains are being consolidated as the bears remain subdued at the start of the week. The rally gained momentum after it broke above the daily resistance at $35,000. At the mid-week, traders were disappointed by the lack of upside pressure to break through the $37,500 zone, but despite naysayers $30k zone proves exclusivity. Although BTC/USD eases on Wednesday but so far remains within the $36,000 to $34,000 range of the past two days. With the drop in Bitcoin’s price, the BTC network’s hash rate dropped as well. This, however, may be attributed to the movement of Miners from China to other regions, as per a number of experts. Others, however, argue that a decrease in the rate of mined coins should have a positive effect on Bitcoin’s price, but this did not apply.

Key Levels
Resistance Levels: $43,000, $40,000, $37,500
Support Levels: $33,500, $30,000, $27,000

BTC/USD Daily Chart: Ranging

BTC/USD Daily Chart

Despite the gains in the last two days, daily analyses warn of a deeper pullback as indicators (RSI/Moving Averages) swung south and bull-trapped over $33,500. Near-term action is hampered by the moving average (MA 50) barrier. The latest sideways action has enabled the RSI to retreat beneath the 50 neutrality area.

This may attract more buyers without raising concerns of over-extension. Breaking the $37,500 zone (converging 50-MA) would trigger an initial bullish signal, exposing psychological $40,000 resistance, which would enhance upside pressure and bring into focus the key resistance level around $43,000. Near-term bears are expected to remain subdued above $33,500.

BTC/USD 4-Hour Chart: Ranging

BTC/USD 4-Hour Chart

On the smaller time frame, a bullish close above $35,000 level could swiftly lift resistance at 4-hour moving average (MA 200) $35,800 level and resume the rally to $37,500. On the downside, the 4-hour moving average (MA 50) around $33,500 is the closest support if the price action requires more bids followed by $31,000.

At present, the lack of upside push may suggest that the outlook remains negative and Bitcoin may be on track to resume its larger downtrend after consolidation. Further restricted declines, on the other hand, would indicate prolonged consolidation but would preserve the short-term bias with bulls for a renewed assault on critical resistance at $37,500 to $40,000.

Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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