If the price breaks through the 200-period SMA, it could confirm the resumption of the higher tendency. If Bitcoin stopped the sales soon, the value would resume the bullish direction, heading for USD 50,000 next.
The price of Bitcoin (BTC) has gone through a bearish week, which is about to end. The following weekly forecast will help uncover where the value of the pioneering cryptocurrency could head in the short term.
Bitcoin is trading at around USD 39,688 and has accumulated a 6.2% loss over the last 24 hours. Its daily trading volume is above USD 30.14 billion, and its market capitalization is about USD 754.43 billion, according to CoinGecko.
There has been a general reduction in risk exposure by investors, which seems to have contributed to recent sales. The US Federal Reserve (Fed) might announce an increase in interest rates soon.
Although there has been a bearish short-term trend in the cryptocurrency market, it is not yet a worrying direction.
The weekly metrics summary by CryptoQuant indicates that the bulls are still the dominant force in the market. Most indicators related to supply and demand, besides those tracking the behavior of Bitcoin whales, are bullish.
However, there are still no signs that the bulls have recovered control, so there may be more sales in the coming days.
The Weekly Analysis and Forecast of the Bitcoin Price
The daily BTC/USDT chart shows a clear short-term bearish direction due to a succession of increasingly lower lows.
The price crosses the 8-day EMA and 18-day SMA to the downside following that trend. Since the 200-period SMA also remains bearish, breaking through it could confirm the resumption of the higher tendency.
There is currently bearish momentum underway, which could search for at least USD 41,000. However, the space for sales may be about to end.
For Now, the Drop in the Bitcoin Price Is Just a Pullback
The weekly chart shows an optimistic forecast for Bitcoin, which only seems to be a pullback before continuing to rise.
After creating a double floor of over USD 38,000, the price of BTC may have reached the bottom of the fall. It recently broke through the neckline of that figure.
The price is moving back toward the 8-week EMA and 18-week SMA, which it recently crossed to the upside.
If the sales of Bitcoin stopped soon, the price would resume that bullish direction. It would then head for USD 50,000 next.
If it did not, the price could remain locked in the latest sideways range in which it is, but without showing too negative signs.
Despite the bearish week that Bitcoin has just experienced, investors should not worry yet since the bulls still dominate the market. The price has fallen from USD 46,500 to nearly 40,000, clearly showing a bearish trend.
There is no confirmation that the bulls have recovered control and sales have increased, triggering fear among investors. However, it is only a matter of time to see the price of Bitcoin resume the upward trend.
By Alexander Salazar
