Bitcoin Resumes Consolidation; Will BTC Plunge Below $38K?
The value of decentralized cryptocurrencies was supposed to remain higher despite the movement woes. Bitcoin remains the domain leader with an absolute market capitalization of USD 719 billion, which is more than twice of next in line Ethereum. Despite carrying the highest market capitalization, cryptocurrencies seem to rise and fall in tandem with the Ukraine-Russia talks. Outside of international events, BTC seems to be waiting for an opportunity for a breakout in either a positive or negative direction. With the overall price trend, after every consolidative movement, BTC has hit fresh highs. Whether we take 2019 as a base of this conclusion or some previous year.
The support of 200 DMA was a crucial factor that highlighted a possible weakness in BTC counters, which it breached on December 28, 2021. Since then, BTC has not even delivered a good breakout attempting to reach the above important level. After 200 DMA, even the 100 DMA that currently touches $43000 indicates a profit booking level. With such a profit booking stance, BTC delivering a positive return would take some time. And to learn more about the possible future BTC price levels, traders should explore experts’ opinions forecasts and do some own research before entering the trade.
Bitcoin Price Analysis
The BTC price movement resembles a consolidation between the $45000 and $37000 price range. Whether BTC can overcome the international woes or require more time to overcome the lower price movements remains a heightened concern.
Considering the start of 2022 as a negatively trending market for BTC, it was clear that BTC is in for a downtrend ride. With the movement downtrend, we expect a tough resistance for BTC to cross its immediate resistance of $45000. So much that even $37000 support seems to be losing its strength. Once this significantly important support is breached, BTC will have a hard time plugging the leak.
RSI has indicated a consolidated movement with RSI above 60, pushing BTC under profit booking stance. While volumes on BTC have largely remained in the same range since November 2021, we can expect the prices of BTC to rebound only in the long term. While signs of support at lower levels would result in a smaller trading range and sudden breakout towards $40000, the reverse could push BTC close to the psychological level of $30000.
