Last week, the Bitcoin market consolidated. While putting the bulls in a difficult position, it brought great joy to the bears. Crypto investors expressed concerns about how Bitcoin’s swings may impact the market.
Bitcoin attempted to re-escape from the present $30,000 resistance level. However, the bear’s readiness prevented the price from moving higher. As a result of the market’s selling pressure, crypto capitalization fell by 1.93%.
In late April, the bears seemed aggressive at the conceptual round level of $30K. The fact remained a key obstacle for the bulls. The traders’ buying attitude did not appear to be strong enough to overcome the bearish pressure produced after the price reached the barrier level.
However, buyers took profits briefly this week, pushing BTC up as much as 5.85% to the $30k mark. The bears eventually converted it into a reversal. They lowered the crypto colossus – Bitcoin – by 2.23% at the time of writing.
Currently, Bitcoin is trading at $28,514, down 2.6% overnight. It positioned itself at the 50 SMA on the 4-hour price chart. If the bulls fail to defend this level, they may retest the $28,000 barrier. The RSI still continues to fall toward the oversold zone.
Trading volume increased 74% in the past 24 hours as the month began. Following the decline, the market capitalization was $552.138 billion.
Bitcoin price movement affects the sellers’ behaviour
After three days of stabilization in a narrow range, the Bitcoin price is flashing negative indicators. On the daily price chart, BTC fell below the Bollinger Bands indicator’s mid-band. If the lower band of the BB indicator falls below the currency price, buyers should expect another 5% retracement in BTC.
The daily RSI indicates a decline in momentum in futures trading hours. After a bearish crossover to a bullish decline, the RSI fell below 50. This retracement phase might lay a solid basis for BTC’s next upward climb.
Despite investor jitters, the Money Flow Index (MFI) is rising marginally. It had reached the level of 55 at the moment, notwithstanding the bearish market attitude. A rise in the MFI indicates a concealed buildup of Bitcoin in preparation for the next bull run.
The $28,000 support is close to the present price and an expected pullback. Besides, it might give short-term support this week. Furthermore, if the price of bitcoin falls below the lower band of the Bollinger Bands indicator, a new bull run cycle may begin.