The sellers want to break through support at USD 29,247 as a new drop might begin, leaving the ground clear for USD 26,281. An early rally could occur if the selling force is not too strong and stops above the area around USD 27,500.
The weekly forecast of the Bitcoin price suggests mixed sentiment slightly tilted to the sellers. The bulls have not been able to maintain momentum, leading the value of cryptocurrency into trouble again.
BTC is trading at around USD 31,233 and has accumulated a 4.3% gain over the last 24 hours. While its daily trading volume is above USD 26.49 billion, its market capitalization is about USD 597.12 billion, according to CoinGecko.
According to the on-chain data analytics platform CryptoQuant, metrics show a picture in favor of the bears for the short term. Indicators related to supply, demand, and whale behavior continue to hold, maintaining the long-term bullish view.
Increasingly broad sideways behavior has led leverage to reach above the prior all-time high. Besides, open interest remains at the same level as last week. Those two readings reveal a lot of activity in the futures market, which usually leads to short-term volatility and selling.
The Bitcoin Price Still Seeks to Reach the Bottom
The rejection reflected on the weekly chart creates a bearish outlook for the Bitcoin price in the short term.
The buyers do not yet seem to be strong enough to stop the bearish market in its tracks.
Given that a new drop is likely to begin, the sellers struggle to break through support at USD 29,247. That would leave the ground clear for USD 26,281.
The weekly forecast indicates that the next support is at USD 19,300. However, the scenario is not pessimistic enough to expect a drop to that level.
The bulls have tried to defend the support of around USD 30,000 to maintain control over the long-term trend.
They are very close this time, but it seems that it will suffer a breach, at least briefly. Besides, a quick search for liquidity may stop sales and mark a possible bottom.
Prediction of the Bitcoin Price Based on the Daily Chart
The daily chart review shows that the bulls maintain control but are about to lose it. If the price broke through support at USD 29,700, it could confirm that the bears want to drive it lower.
There is a relevant demand zone of around USD 27,500. There could be an early rally if the selling force is not too strong and stops above that area. Since it is now impossible to confirm that situation, it will be necessary to wait to see what may happen.
The price maintains the 8-period EMA and 18-period SMA crossed to the upside while attempting to hold them as dynamic supports. The bulls need to defend recent bullish momentum soon again to avoid a further drop in the short term.
By Alexander Salazar
