Connect with us

Price Analysis

Bitcoin Price Bounce from $30k, Crypto Volumes Drop 50% in 2 Weeks

Published

on

Bitcoin price Prediction cryptotelegram
Share this post

The Bitcoin price is firm but remains under pressure after cracking on Jan 27.

As of writing on Jan 28, the BTC price is stable versus the greenback, losing eight percent in the last week of trading.

Traders are optimistic despite strong sellers. Encouragingly, there is a spike in trading volumes, rising 18 percent to over $67 billion.

Bitcoin (BTC) Price Overview

The BTC price is in the immediate term bearish, sliding versus a resurgent greenback as analysts are convinced of a peaking market.

At spot rates, the BTC/USD price is changing hands at $30.75k. A break below $30k could spark a sell-off in a FUD.

This is because $30k is a psychological buy wall and a round number, closely watched by traders possibly looking to either add to their longs or exit their positions, further heaping pressure on the digital gold.

On the flip side, if bulls flow back and stem the slide, the immediate sell wall is the resistance trend line and $35k. These levels could support BTC bulls only if trading volumes continue to swell.

In this case, it would mean the past week’s degradation in BTC prices was climactic, without whales participating, and purely retail.

Bitcoin (BTC) Market Movers

For buy trend continuation, there must be a sharp price recovery from the current multi-week lows of around $30k.

Losses below this level, printing in combination with high bearish volumes, could see prices slide in what could be the beginning of the last few month’s rally.

Already, analysts note an across-the-board reduction in volumes. In two weeks, crypto trading volumes fell nearly 50 percent.

This could suggest a possible exit of retailers as BTC/USD peak or whales playing the waiting game. As seen, the Spent Output Profit Ratio (SOPR) is at overbought levels, according to GlassNode data.

Nonetheless, on-chain statistics point to a possible accumulation. For instance, hash rate (a metric directly influenced by prices) is steady at near all-time highs.

Also, the outflows from exchanges are being traced to HODLers. Different from 2017 peaks, there appear to be more buyers than sellers.

Bitcoin Price Prediction

Bitcoin Price Bounce from $30k, Crypto Volumes Drop 50% in 2 Weeks

The BTC/USD price is, at the moment, bearish even with bulls flowing back in the Asian session.

On the last day, as aforementioned, BTC remains stable versus the USD, losing eight percent week-to-date.

Technically, the market is cooling off after the tear of the last few months.

Notably, Jan 27 bear bar is a confirmation of the bear break out pattern of Jan 21. That was the first time a full bear bar closed below the 20-day moving average (middle BB), confirming the three-bar bear reversal pattern from Jan 7 to 11.

Following these developments, the path of least resistance is southwards. Accordingly, the odds of a break below $30k (the 38.2 percent Fibonacci level of Sep to Jan 2021 high) is high.

A break below this mark could provide an opportunity for aggressive traders to sell the pullbacks targeting $25.5k, the 50 percent Fibonacci retracement level.

Bitcoin Price Bounce from $30k, Crypto Volumes Drop 50% in 2 Weeks

Conversely, gains above $35k and the resistance trend line (clear in the 4HR chart) will embolden buyers aiming at $42k.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

cryptotelegram-telegram-banner

Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!

Trending