The pressure is on as Bitcoin (BTC) battles the 21-day trendline. After failing to maintain stability above the $30,000 mark, the market showed signs of weakness, leading many to question: how much lower will BTC price go?
Data from Cointelegraph Markets Pro and TradingView tracked the wavering BTC price after it was rejected at the 21-day simple moving average (SMA). The market, which began its intraday journey at $30,400, soon retraced all its progress. Michaël van de Poppe, founder and CEO of a trading firm, warned about the potential of a slide to lower levels. Yet still, there’s a glimmer of hope as Daan Crypto Trades suggested volatility might return due to rising open interest.
On the one hand, analysts note the significance of the 21-day SMA, suggesting a temporary peak for BTC/USD. Market data indicated that there were more asks stacking at $31k, signaling that it is getting toppy for the moment. On the other hand, the overall bullish sentiment is subdued as the Binance BTC/USD order book showed a dearth of bid liquidity immediately below the $30,000 mark, provoking apprehension of a possible further dip.
Meanwhile, macroeconomic events were mixed as well. Although strong tech earnings were encouraging, a slowdown in U.S. jobless claims lent support to the U.S. dollar, a development that historically counters BTC price advances. The U.S. dollar index (DXY) surged to near 101 for the first time in a few days following the announcement of initial jobless claims being fewer than forecasted.
Despite this ambiguous atmosphere, the future of BTC isn’t set in stone. While some predict a further dip, others believe in a possible bounce back due to the looming market volatility. As always in the crypto space, investors need to stay vigilant and base their actions on their careful observations, informed analyses, and personal risk tolerance. After all, navigating the untamed waters of cryptocurrency is a challenging journey laden with risks and rewards. This does not represent a trading recommendation and a holistic perspective should be considered before making any major financial decisions.
Source: Cointelegraph
