The price of BTC is about to close a candlestick with a great bearish force breakthrough crucial support at USD 43,000. The bears control the market, but that will change when the price begins to reach increasingly high lows.
The outlook for Bitcoin (BTC) does not look optimistic, as the bearish force dominates and is causing problems in the short term. As the price of the crypto asset drops, fear spreads throughout the market, creating a wave of uncertainty that seems not to reach the bottom.
BTC is currently trading at around USD 41,939.46 and has accumulated a 0.3% gain in the last 24 hours. Its daily trading volume is above 27.42 billion, and its market capitalization is about USD 789.35 billion, according to CoinGecko.
The Bitcoin sentiment indicator went into the extreme fear zone, although this can cause problems in the short term. Large investors usually take advantage of low prices to continue accumulating when fear takes over the market.
The metrics on demand and supply, and those tracking the behavior of whales, are mainly bullish. However, technical oscillators are bearish in the short term, showing that Bitcoin is in trouble.
The Technical Analysis of the Price of BTC
The weekly BTC/USDT chart shows that the price could close a candlestick with a great bearish force. It also indicates that the price is breaking through crucial support at USD 43,000.
That support is the neckline of a shoulder-head-shoulder formation, which heralds the change in trend.
The bears are clearly in control and could push the price towards the next support, at USD 39,000.
The breakout of the support might still become invalid, showing a considerable bullish force next week, which is very unlikely at the moment.
There is a necessary corrective process, but the bullish force is dominant. The whales continue to accumulate, and the supply continues to decline. For that reason, it is highly improbable that the bullish market is over.
Before thinking that the bullish run is over, the price has to break through the support at USD 32,200. However, that scenario is not even close to happening.
Investors must be considerably cautious at the present time, as buying right now can be highly risky. They can assimilate it only if they assess the asset correctly.
The Weekly Analysis of the Value of Bitcoin
The daily BTC/USDT chart clearly shows that Bitcoin is in trouble in the short term.
The great bearish force of the last few days has reaffirmed that the bears are in control. Besides, that will not change until the price begins to reach increasingly high lows.
On January 6th, the price of BTC found support at USD 40,750. Although there could be a bullish rally in the coming hours/days, it could simply serve to pick up supply and continue dropping.
To think that a large rally will occur, sellers must show exhaustion during the next dip. Otherwise, Bitcoin could lose support at USD 40,750 and look for a minimum of USD 38,200.
By Alexander Salazar
