Various metrics and indicators such as the reduction in BTC reserves on exchanges show long-term bullish signs. If the price breaks through the resistance at USD 43,000, there could be an increase in selling in the short term.
A bearish tendency has fueled short-term fear sentiment, replacing volatility in the cryptocurrency market. That factor played a significant role in making this weekly forecast.
BTC is currently trading at around USD 44,232 and has accumulated a 3.9% gain in the last 24 hours. Its trading volume is above USD 20.50 billion, and its market capitalization is about USD 838.60 billion, according to CoinGecko.
The price of most cryptocurrencies follows that slightly bearish trend. ETH, BNB, ADA, and SOL have accumulated losses of between 1% and 13% in the last week.
The cooling of the cryptocurrency rally may put recent gains at risk. Unless the bulls come back with force, the bears would again drive prices lower in the coming days.
Various long-term metrics and indicators have shown bullish signs for the price of cryptocurrencies. That information includes the decline in BTC reserves on exchanges, the increase in the reserves of stablecoins, the hash rate, and the mining activity.
However, the lack of determination of buyers and the taking of profits by the whales create high uncertainty in the short term.
The Behavior of BTC Helps Predict the Prices in the Crypto Market
Undoubtedly, the behavior of the price of Bitcoin considerably influences the general trend of the cryptocurrency market. For that reason, it is convenient to conduct a weekly review based on an analysis of the pioneering cryptocurrency.
The BTC/USDT weekly chart shows the selling pressure has wrapped up almost all of the gains in the last week. The attempt of the price to break through the resistance at USD 43,000 could lead to increased sales in the short term.
The most bullish thing that could happen would be significant buying pressure above USD 40,000. That would create a possible inverted Shoulder Head Shoulder pattern to make way for a trend reversal.
If the opposite happens, there could be a further drop towards the USD 35,000 level. In that case, the price would touch the current most significant support zone, which extends to USD 30,000.
A breakout of the area around USD 30,000 would signal confirmation of potential crypto winter. However, fundamentals indicate that such a scenario is not very likely.
Crucial Levels in the Price of Cryptocurrencies in the Short Term
The daily BTC chart allows for a more accurate weekly forecast, as it serves to confirm where the next relevant movement will be.
The 8-day EMA and 18-day SMA confirm that the short-term trend has remained bullish.
Currently, there is a pullback after the strong rally to the upside, and sellers are yet to show any signs of exhaustion.
The closest support on the chart is at USD 41,200, an excellent point to resume the trend. If the price of BTC lost that level, the bullish intention in the short term would be at risk, causing a further drop to USD 35,000.
A bit of volatility could lead to USD 40,000, but buyers could remain confident about a bullish scenario.
As the price broke through the immediate resistance at USD 44,500, it is clear that the bulls have regained control. Therefore, a rally to USD 50,000 is possible.
By Alexander Salazar
