X

Bitcoin Price Analysis: BTC Market Dumps But Fundamentals Are Very Strong

  • The fundamentals of the Bitcoin market are still excellent
  • The price trend of Bitcoin is neutral by 0.4% during the intraday trading session
  • Bitcoin’s 24-hour trading volume is 20,488 billion US dollars

With the support of solid fundamentals, The weekly technical chart of Bitcoin price movements displays a sideways trend. According to the pivot point (FIB), the basic support levels for BTC are $30320 and $20640. On the other side, if it progresses up, the resistance level to watch is $36428. Thus, although the chart forms a bullish Harami candlestick pattern within the day, it is predicted that the price may reverse and rise, with average reliability. 

The exponential moving average (EMA) composed of 50,100,200-EMA acts as a reliable support in the token price. Investors can view that the price dumps underneath the purple line (50-EMA), which confirms the current downtrend, so the bears will confirm the downtrend of BTC as the price stays below the EMA-50. 

Volume of (35.202K) is below the MA of 20-days (70.07K). Buying pressure is moderate in Bitcoin, causing its price to rise from the support zone. Investors may also perceive that the volume bars on the chart are declining, which indicates that significant volatility is expected in the upcoming trading session. 

The RSI indicator gave a (bearish) sign with 42.78, projecting a sell signal in the coin. As a result, investors may observe a flat slope. On the other hand, it may surge in future trading sessions.

Bitcoin Fundamentals Remain Strong

Source: alternative.me

However, the Bitcoin Fear and Greed Index, which can be used as an indicator of market sentiment, is still in terrifying territory, recording 23, or “extreme fear.”

The fundamentals of the Bitcoin market remain pretty strong. This week, market mover Elon Musk announced that his two companies, Tesla and SpaceX, own Bitcoin, which had a major impact on him. He added that apart from him, they have no intention of selling. Naturally, a FOMO-driven pump responded to this, and BTC has risen by 10% since the disclosure. 

The consensus of industry experts is positive. Large-scale mining migration has led to more mining using renewable energy. Even mainstream media are reporting that Bitcoin mining is better for the environment than when China dominated hash power. 

The next few days or possibly weeks will determine the direction of the next big move because it always happens after such a long period of low volatility.

Resistance: $36428

Support: $20640

Categories: Markets News
Nikhil Ingole: Mr, Nikhil Ingole is a Chief Editor at The Market periodical with over five years of technical analysis & trading experience in Forex and Crypto. As a commerce graduate, he has taken a keen interest in blockchain's future potentials in the financial industry. A keen cryptocurrency enthusiast, he is very supportive of new media projects, pioneer ideas and the Bitcoin community. He possesses strong technical, analytical skills and is well known for his financial market's informative analysis. Other than crypto, Nikhil Loves to watch his favorite football team and keep up to date with the latest Formula 1 racing.