The bullish trend is much higher, so this is still the most likely scenario. If Bitcoin loses the USD 30,000 level, there would be sales of at least USD 23,800 per unit.
The bears recently caused fear in the cryptocurrency market but the price of Bitcoin is recovering very strongly. This situation reaffirms the importance of the big demand zone close to USD 32,000.
Many analysts in the ecosystem are concerned that there has yet to be a full recovery from the short-term trend.
The risk of losing the USD 30,000 level persists due to the bulls’ lack of determination to recover that of USD 42,000. There is no support between this level and USD 20,000, which could lead to chaos if bears succeed in taking control.
However, the bullish trend is much higher, so the current decline seems to suggest a simple correction. Therefore, that scenario is the one that remains the most likely.
Instead of worrying so much about the future, it is better to react to what is happening now. The price charts in different time frames provide information in this regard.
Technical Analysis during Bitcoin’s Price Recovery
The bulls have had a great performance on the daily time frame. That started after the support zone near USD 32,000 was put to test again.
A strong bearish rejection and a bullish engulfing candlestick indicate that the short-term trend could pass into the hands of the bulls.
However, to confirm that, it would be necessary to see the price break the resistance at USD 40,500. There is still a risk that the price of Bitcoin will go from USD 32,000 back to USD 30,000.
If the pioneering cryptocurrency reaches a price of USD 30,000, that would be a determining test. If it loses this level, there would begin to be sales of at least USD 23,800 per unit. Below that, the support is at USD 19,500.
However, recent Bitcoin’s price action reaffirms the bullish view for the near future. Analysts believe that the cryptocurrency has already reached a bottom after the general market collapse on May 19th.
Due to the strong defense of the support level at USD 32,000, probabilities are between 40% and 60% in favor of the bulls now. If this situation continues, the price will break above USD 40,500, giving way to a new push towards all-time highs.
Bitcoin Price Weekly Chart
The current weekly candlestick seems to indicate that the bulls were simply waiting. Although there were problems with resuming the trend, the current candlestick shows the control of the bulls.
The previous bullish force could surprise many people, which it seems to be starting to do now.
The recent drop means a simple pullback for the great strength that the bulls have had in recent months. USD 64,000 does not seem to be the top of this bullish cycle, even considering a very good outlook for risk assets.
Some negative factors are the large printing of money by the United States, and the increasing speed with which it circulates in the economy. The apparent return to normality that the world is experiencing may be the reason for this situation.
By Alexander Salazar
