The defense of the support zone near USD 30,000 may indicate that the price has reached the retracement bottom. Support above USD 30,420 would allow Bitcoin to break the immediate resistance at USD 34,663.
Although Bitcoin has not shown much bullish strength in recent weeks, it continues struggling to avoid a further collapse. The following fundamental and technical review of the current situation of Bitcoin can help predict what will happen to the cryptocurrency this week.
Bitcoin is trading at USD 32,400 and has accumulated a 5.1% profit in the last 24 hours, according to data from CoinGecko.
Twitter user Dilution-proof analyzed a graph indicating that the whales bought large amounts of Bitcoin during the recent crash.
Even though many focus on Bitcoin sellers when the price suffers losses, hoarders are the ones who take advantage of that situation. The latter traders manage to defend the cost of the cryptocurrency before the losses become too great.
The Top of the Bullish Run Was USD 65,000
Most analysts consider that the bullish cycle of the pioneering cryptocurrency is not over yet. A growing number of people are trying to protect themselves from the effects of excessive money printing on the global economy.
Also, the deposit transaction counts on exchanges indicate that the highest point of the bullish run has arrived.
There were 64,470 deposit transactions on exchanges when the price of Bitcoin reached its all-time high of USD 65,000. That number was far from the 216,738 trades at the top of the 2017 bullish market.
Although a bearish direction may cause problems in the short term, the situation is getting increasingly difficult for the bears. Meanwhile, they defend the price above USD 30,000, saying that the 60% drop was enough.
The sales volume is decreasing, so it is convenient not to struggle against the bullish strength that Bitcoin has been showing.
Technical Analysis of the Price of the Pioneering Cryptocurrency
The weekly Bitcoin price chart indicates the repeated defense of the support zone near USD 30,000. That shows the exhaustion of sellers and may be a sign of the arrival at the retracement bottom.
For that reason, it is necessary to break the resistance at USD 39,380 to announce a possible resumption of the higher trend.
Concerning a possible bearish scenario, it is necessary to lose the support at USD 30,420, which would leave the path clear to USD 19,359.
Bitcoin Levels to Take into Account This Week
The daily candlestick chart shows other levels that could influence price action, regardless of how the current accumulation ends.
As Bitcoin is building support above USD 30,420, at least a recovery may be starting. That would allow the cryptocurrency to break the immediate resistance at USD 34,663. As long as the price does not surpass the USD 40,500 resistance, there could be further bearish lashes or a sharper drop.
In case of breaking it, the path would be free to USD 49,671. Since that may mean the resumption of the higher trend, it is not unreasonable to expect new all-time highs.
If the price loses the support at USD 30,420, there will be no further support up to around USD 26,281. Below that level, the next support zone is near USD 24,000.
By Alexander Salazar
