SNEAK PEEK
- Bitcoin’s price volatility has dropped to its lowest level since January.
- The volatility drop marks a five-week streak of declines.
- The market value for Bitcoin currently sits below the $30k mark.
Bitcoin’s recent dip below the $30k mark has caused alarm among investors, as it marks a significant psychological support level. However, experts say that the drop may not be as significant as it seems, as Bitcoin’s price volatility has actually been relatively low in recent weeks. In fact, the cryptocurrency’s price volatility has dropped for the fifth consecutive week, with the market value currently hovering around $29.8k.
Despite concerns over the recent price drop, some analysts remain optimistic about the future of Bitcoin. While market volatility is always a concern, many believe that the underlying technology behind cryptocurrencies like Bitcoin will continue to gain momentum in long term. As such, it remains to be seen whether the recent dip in Bitcoin’s price is a temporary setback or a sign of more significant issues in the cryptocurrency market.
Bitcoin Price Analysis
Today’s Bitcoin price analysis reveals that the bears have taken control after a long period of the bulls dominating the market. BTC was hovering above the $30,000 region for a long time until recently when it fell below this key level. The fall was mainly attributed to sellers targeting large traders who established long positions at higher levels. The decline is rather significant and could have an impact on the digital currency’s future trajectory.
The current support level is seen at the $29,154 level which is acting as a cushion against further losses. A price slip below this mark can trigger panic selling and push the price toward the next support level of $28,500. On the higher side, resistance is seen at the $29,947 mark. If BTC manages to close above this level on a daily basis, bulls could start targeting higher levels to recover some of their recent losses.
According to the 1-day chart for Bitcoin price analysis, BTC has been trading on the bearish side for the whole day. The bears have been in control and they have managed to push the price to its current price mark of $29,800 which has seen a loss of 0.38 percent. The lower high/higher low pattern indicates a short-term bearish trend in the market.
On the technical indicators, the Moving Average Convergence Divergence indicator is sloping downwards which indicates that the bearish trend will continue to dominate in the near term. The histogram is the negative territory as well since the red bars indicate a price decline.
The Relative Strength Index (RSI) indicator is hovering in the neutral zone with a value of 61.16 which shows that there is still room for a further decline in the price and the buyers can take advantage of this drop to enter the market with long positions. The Bollinger Bands have reduced in size which indicates a decrease in volatility. The upper and lower band are seen at $31,005 and $27,021.
Overall, Bitcoin’s price volatility has dropped to its lowest level since January, reaching a 5-week streak of declines. The current market value is sitting at $29.8k and bears have taken control of the market for the day. The coin has been stuck between the two key levels of $30k and $29.15k for quite some time now, which could indicate that the bulls might have to push harder before any significant breakthrough can be made.
Disclaimer: Cryptocurrency price is highly speculative and volatile, and should not be considered financial advice. Past and current performance is not indicative of future results. Always do your own research and consult with a financial advisor before making investment decisions.
