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Bitcoin price recovery becomes an uphill battle but could this stability signify maturity as a long term asset?

Bitcoin has been stuck under the 200 Simple Moving Averages for several days now. On the downside, support at $31,000 has become extremely vital to the bulls, helping to avert potential losses to $25,000 and $22,000 respectively.

In the meantime, the pioneer cryptoasset is dancing at $32,263. Short-term buyer congestion at $32,000 is assisting in keeping BTC stable. However, the volume is relatively low, which limits all the efforts made to rise above the 200 SMA resistance on the 4-hour chart.

An incoming death cross is likely to add credence to the bearish outlook, further delaying recovery. This pattern forms when a short-term moving average crossed under a longer-term moving average. In technical analysis, the death cross is interpreted as a bearish pattern that either leads to more losses or hinders price growth.

Looking at the Moving Average Convergence Divergence or MACD, Bitcoin is likely to fall into consolidation before a breakout comes into the picture. The MACD measures the momentum of a certain trend and its strength. For now, the technical indicator shows no definitive direction for Bitcoin as it levels marginally below the zero line.

BTC/USD 4-hour chart

BTC/USD price chart by Tradingview

Bitcoin has for the past week displayed its ability to stabilize as an asset, whereby it is oscillating between a wide range, running from $31,000 to $34,500. Investors are hopeful that an upswing back to $40,000 will occur as soon as possible. However, the stability shows Bitcoin’s ability to be used as a store of value in the long run.

Bitcoin intraday levels

Spot rate: $32,263

Relative change: -445

Percentage change: -1.4%

Trend: Bearish (short term)

Volatility: Low

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