While a volatile breakout could approach from the top, a massive accumulation could lead Bitcoin higher. If the price breaks the resistance at USD 35,900, there will be purchases up to USD 40,100, a level that it must overcome to regain the medium-term trend.
While the pioneering cryptocurrency continues to move sideways, the volatility in the crypto market has fallen to lows. Although Bitcoin (BTC) has been a little bearish, nothing alarming has happened so far.
According to CoinGecko, Bitcoin is currently trading at around USD 33,204 and has lost about 2.1% in a week. That brought its market capitalization to above USD 622 billion.
Different analysts agree that the approach of a volatile breakout in the price of the cryptocurrency is increasingly likely. Odds suggest this could happen from the top.
According to cryptocurrency analyst William Clemente, a massive accumulation could lead Bitcoin to a bullish contraction. That happens when short positions have to close, adding more fuel to the bullish fire.
Also, the long-term price of Bitcoin remains solidly bullish, not just on the price chart.
According to the Crypto Quant chart, the point at which stocks are on exchanges is higher than in March 2020.
A clear bearish trend in this indicator facilitates the reading as a shortage leads to a higher price. Only if the direction becomes clear again will it be possible for increased supply to get back on track.
Bitcoin Price Technical Analysis as It Continues to Move Sideways
When the price of the pioneering cryptocurrency fell to USD 32,000 again, the whales accumulated many more coins, according to WhaleMap.
A support level has formed there while another is higher up at USD 34,497.
WhaleMap’s tracking map indicates that there is resistance at USD 35,901 and USD 37,431. Although those levels do not emerge from the technical analysis, they can help understand what is happening with the price of Bitcoin.
The daily chart shows support at USD 32,700, which coincides with the support zone that WhaleMap shows. Losing this level could lead to sales, which buying pressure above USD 30,000 can quickly hamper.
The Bitcoin price could lose support at USD 28,850 if a very negative market scenario emerges. That way, the runway would remain clear to USD 26,500, which is much less likely to happen.
At the top, there is strong resistance at USD 35,900, the same as WhaleMap shows. Breaking it would open the way to purchases up to USD 40,100, a level that Bitcoin would need to exceed to recover the medium-term trend.
The previous strong bullish trend, which good fundamentals support, and the extensive decline in recent weeks make the bullish scenario the most likely.
Bitcoin Is Moving Between Strong Hands and Weak Hands
Renowned analyst Willy Woo recently said that long-term holders are absorbing currencies like Bitcoin very quickly. He explained that data consistently indicates that an accumulation floor is forming.
Amid a further drop in the price to USD 20,000, Woo believes that fundamentals point to a bullish trend.
He stated that there could be a supply crisis, but the market is not aware of it. In other words, long-term holders are receiving the currencies that went from whales to speculators.