Although the metrics related to supply, demand and accumulation are mainly neutral, a good part of them are bullish. A significant bullish rejection indicates a short-term bearish outlook, but support remains near USD 32,000.
The price of Bitcoin (BTC) jumped as high as USD 45,300 at the beginning of the last week, with sellers putting heavy pressure on it once again. For that reason, the short-term forecast for the pioneering cryptocurrency does not look very encouraging.
BTC is trading at around USD 39.90 and has accumulated a 1.0% gain in the last 24 hours. Its daily trading volume is above USD 19.90 billion, and its market capitalization is about USD 743.70 billion, according to CoinGecko.
The value of Bitcoin is only 0.08% higher than it was a week ago. The bears recently wrapped up the bullish intent, cutting off the chance for momentum to generate further gains.
Metrics Tilt toward Buyers, Indicating a Potential Bottom
The summary of metrics indicates that there is a slightly neutral outlook tilted to the upside.
Most technical oscillators are neutral, but those showing a slope signal a short-term downward trend.
The metrics related to supply/demand and whale accumulation are also mainly neutral, but a good part of them are bullish. The 3.5-year low that BTC reserves on cryptocurrency exchanges reached is one of the most relevant signs.
The most optimistic part of this analysis is the behavior of on-chain indicators since 4 out of 9 are bullish. That could mean that the drop in the price has bottomed out or is about to do it.
Weekly Analysis and Forecast of the Price of Bitcoin
The daily BTC/USDT chart shows the bears regaining control in the short term after wrapping up almost all of the recent upside moves.
However, the price of Bitcoin is still in a broader range, between USD 36,000 and USD 44,500. For that reason, any fluctuation within that rectangle is not a very determining factor.
It seems that the price continues to test the support of that range, as it will not very likely lose it yet. There may be some volatility towards the USD 33,000 area, which may cause some buying pressure. Right now, the probabilities slightly tilt towards a short-term scenario.
The Price of BTC Remains above Its Most Significant Support Zone
The closing of the weekly candlestick showed a significant bullish rejection, so a short-term bearish Bitcoin forecast is most likely to occur.
However, the price remains above the support zone nearing USD 32,000. For that reason, the bulls will continue to dominate the long-term upward trend and may surprise the crypto community any time soon.
At this time, the weekly chart shows increasingly low lows, which suggests that there will be more problems in the short term. However, the reluctance of sellers to drive prices lower indicates an increasingly brief selling space.
Bitcoin always leads the way of the rest of the crypto market, which investors in that digital asset do not overlook. The above analysis helps understand the behavior of the leading cryptocurrency and where its price might head next.
By Alexander Salazar
