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Bitcoin Price Prediction: BTC Poised For Another 8% Drop, Time To Sell?

coingape.com 04 August 2021 07:30, UTC
Reading time: ~2 m

  • Bitcoin price barely holds above $38,000 short-term support as losses linger toward $35,000.
  • The MACD on the four-hour chart has a vivid bearish signal, implying that the slightest resistance path is downward.
  • Only a break above $40,000 will ensure market stability as bulls look toward the ultimate liftoff past $50,000.

Bitcoin price has lost several key support areas in the past few days. The upswing to $42,500 had renewed investors’ hopes that time had finally come for Bitcoin to regain its glory, moving above $50,000 and toward $65,000.

However, a correction came into the picture, with Bitcoin sliding under $40,000. The down leg was later stretched under the 50 Simple Moving Average (SMA) on the four-hour chart. At the time of writing, bulls seem to be struggling to keep the price above $38,000. However, a four-hour close below this crucial level will likely trigger massive sell orders as losses progress toward $35,000.

Is The Bitcoin Price Correction Stoppable?

The downtrend looks robust from a short-term technical perspective, mainly when the Moving Average Convergence Divergence (MACD) indicator is observed. This technical indicator follows the trend of an asset and calculates its momentum.

With the 12-day EMA crossing under the 26-day EMA, the odds for a downward price action increased. Meanwhile, The MACD has just crossed beneath the mean line, inferring that bears are completely in control. If the technical picture remains unchanged, Bitcoin will carry on with the correction to $35,000.

BTC/USD four-hour chart

BTC/USD price chart

Meanwhile, the Relative Strength Index (RSI) is still neutral despite the retreat from $42,500. In other words, Bitcoin is not oversold yet, and sellers still have room to explore. Currently, the RSI holds at 35 while gradually sliding to the oversold area.

Perhaps, confirmed support at $38,000 would nullify the calls to $35,000. With Stability at this level, we expected buyers to start coming in masses while skepticism over the sustenance of the uptrend reduces. A break above $40,000 will affirm the bulls’ grip on Bitcoin as eyes gaze at lifting to $50,000.

Bitcoin Price Intraday Levels

Spot rate: $37,985

Trend: Bearish

Volatility: Expanding

Support: $35,000

Resistance: $40,000 and $42,500

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