After a strong generalized bearish tide in the crypto market, prices are trying to recover. If you want to find out where Bitcoin is likely to be heading, below we make a weekly forecast.
At the time of this writing, BTC is trading at $30,110. It accumulates a gain of 4.26% in the last 24 hours, although maintaining a loss of 12.76% in the last 7 days.
The expected bearish volatility has arrived, the point is that there could still be more to come.
Bitcoin needed a capitulation event, where the weakest would jump ship and a new rally would take place. However, it may still take a little more blood for this to happen.
In the weekly summary of Crypto Quant metrics we see that all indicators related to supply and demand closed again throwing bullish signals. The reserves on the exchanges remain at 3-year lows. In addition, long-term holders have been taking advantage of discount prices.
Despite this, market sentiment, whale behavior, and technical oscillators are mostly throwing up pessimistic signals. If we add to this the little buying determination that we saw in the surrounding support at 30K, it seems quite likely that we will see the price in trouble in the short term.
Weekly Bitcoin forecast based on technical analysis
In the weekly chart of the Bitcoin price, the forecast that we can obtain is bullish, and below I show you why.
BTC visited its most important support zone for the long term, around $30,000, and even sought liquidity a little lower as expected.
Quickly, the bulls curbed the selling pressure, and now we are seeing a significant rejection over the named price zone.
The fall that we have been seeing for the last few months is signifying a healthy and necessary correction of the long-term trend.
Now that we saw the price look for the 61.8% Fibonacci, and rejection of low prices, it is feasible that the correction has bottomed out, or at least is close to doing so.
We should not expect a parabolic rally from the current point. Historically, recoveries usually start with a wide lateral range.
In addition, as we will see in the following paragraphs, we may see a little more bearish volatility in the short term, in order to touch the possible bottom.
Daily chart
From this time frame, the forecast that is obtained for Bitcoin is still not so positive. Because the short-term trend is clearly still in the hands of sellers, it is more likely that we will see more sales in the coming days.
The price of BTC marked a minimum in a support around $25,400, during the day of extreme volatility on May 12.
While we saw a lot of low price rejection, the dominant volume is still bearish. In addition to this, the bulls have not yet managed to cross any immediate resistance, so the short-term trend remains totally bearish.
At the moment, it seems that we will see at least a new search for the $25,000, and if that area is lost, then the next goal for the bears is to search for the $23,000.
To think about purchases, the immediate resistance located at $31,000 must be overcome. The most conservative would expect continuous lows and higher and higher highs on the daily chart, in order to rely on a bullish direction in the short term.
All our publications are of an informative nature, so in no case should they be regarded as investment advice.
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