A healthy pullback would drive the price would rise to USD 30,000, allowing gains of 27% in the short term. A bearish weekly forecast is also possible due to little buying determination, taking Bitcoin toward USD 19,000.
After dropping slightly for several days, the price of Bitcoin (BTC) might resume the short-term bullish trend. That provides an optimistic forecast for the following seven days.
BTC is trading at around USD 24,259 and has accumulated a 3.3% over the last week. While its daily trading volume is above USD 19.82 billion, its market capitalization is about USD 461.83 billion, according to CoinGecko.
The Volatility in the Price Decreases as Bitcoin Whales Stay Put
Many expected the Fed’s decision and Powell’s comments to cause volatility and problems for Bitcoin. However, the price increased as nothing wrong happened, and the market had discounted the possibility of a rate hike.
BTC has recovered the realized price, a metric announcing the possible bottom of the bearish market whenever crossed.
However, the MVRV ratio indicator still indicates room for the price to continue dropping, comparing the current decline with previous bearish cycles.
The whales, who generally focus on the long term, remained motionless over the last week, evident from the low inflows on exchanges.
They might wait for a catalyst, which would define the direction in the short term, but the outlook is bullish.
The Weekly Forecast of the Bitcoin Price
The weekly chart shows that the price of BTC is undergoing a corrective process, which generates a bullish forecast.
The cryptocurrency dropped to USD 17,622 and had a significant buying volume that announced a possible bottom. However, the price has made a healthy and necessary pullback after a steady decline for several months.
The price would rise to the demand zone around USD 30,000, thanks to a healthy pullback. A rally to that price will allow BTC to make gains of around 27% in the short term.
Since buyers have little determination, a broader rally is at risk. That situation may cause the price to drop to USD 19,000 to pick up demand and move toward USD 30,000. However, if the following predictions come true, that might change in the next few hours/days.
The Bitcoin Price Remains Locked in a Rising Wedge
The little volatility in the price of Bitcoin recently formed a rising wedge figure, announcing a possible trend change.
Since it formed on the relevant support at USD 19,000, it might be announcing a respite. That would cause the accumulation of large clusters of orders that might make the price jump when crossing the resistance line.
However, there is also a possibility of a bearish weekly forecast, where little buying determination could cause the Bitcoin bears to take control. They would take the price toward USD 19,000 when it breaks through the ascending line enclosing the wedge around USD 23,800.
Factors like the depth of price drops, the need for a broader respite, and metrics announcing a possible bottom indicate a bullish scenario.
The behavior of the price of Bitcoin over the last week indicates the possibility of resuming the bullish trend.
By Alexander Salazar