Bitcoin recovery catches buyers after failing to surpass $30,000 zone
The Bitcoin market consolidated last week, raining joy on the bears and putting the bulls in a tough spot. Crypto investors are anxious about how Bitcoin’s movements will affect the market.
Bitcoin once again tried to escape from the current resistance level of $30,000, but the readiness of the bears did not allow the price to increase. Thus, the crypto capitalization fell by 1.93% after the selling pressure in the market.
Bitcoin’s price movement over the past week
The bears looked aggressive at the conceptual round level of $30,000 in late April, which remained a major hurdle for the bulls. The buying sentiment of the traders did not seem enough to overwhelm the bearish pressure created when the price hit the resistance level.
But in the last week, buyers briefly took profits and pushed BTC up as much as 5.85% to the $30k mark.
Finally, the bears turned it into a reversal by pulling down the crypto giant – Bitcoin by 2.23% at the time of writing.
Will buyers get active at $28,000?
Currently, the Bitcoin price is at the 50 SMA on the 4-hour price chart, while the price is trading at $28,514, down 2.6% overnight. If the bulls fail to defend this level, they could see a retest of the $28,000 level as the RSI continues to move down towards the oversold zone.
Trading volume increased by 74% in the last 24 hours in the middle of the month opening. After the decline, the market capitalization reached $552.138 billion.
Bitcoin Price Action Affecting Sellers
Bitcoin price is showing bearish signs after three days of consolidation in a tight range. On the daily price chart, BTC fell below the middle band of the Bollinger Bands indicator. This bearish signal causes buyers to experience another 5% decline in BTC if the lower band of the BB indicator breaks below the currency price.
On the daily RSI side, a downward momentum can be seen in the upcoming trading hours. The RSI moved below the 50 level after a bearish crossover to a bullish decline. This retracement phase could create a strong foundation for the next upward rally in BTC.
Will the positive MFI signal affect the retracement cycle?
The Money Flow Index (MFI) rises marginally despite investors’ unease. At that time it had reached the 55 level against the negative market sentiment. A rise in the MFI indicator suggests a hidden accumulation of bitcoin for the next bull run.
For this week, the $28,000 support is near the current price and an impending retracement, which could provide short-term support. Furthermore, if the bitcoin price hits the lower band of the Bollinger Bands indicator, it could start a new bull run cycle.
Also read: Bitcoin price recovers to $30,000 during expiration of monthly options
Disclaimer:
The information provided in the analysis is strictly for academic purposes and not financial advice. We ask that you do your own research before investing in cryptocurrency.
