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As Bitcoin continues to trade in a narrow range, it has been hit by a wave of falling volatility and low volume in the present week. With BTC/USD prices continuing to volatile, many traders are stuck in the battle between bulls and bears, taking profit from short price swings, regardless of which way the price is headed. The absence of notable triumphs on both sides was aided by a relatively quiet news atmosphere. Although BTC crossed the $35,000 threshold at the beginning of the week, it has since registered a low of $32,111. Despite the recent gain, the BTC price remains tilted towards the $30k floor. Meanwhile, at the time of this post, the price of BTC/USD is consolidating above $32,700. JPMorgan analysts suggest that the probable unlocking of shares in the Grayscale Bitcoin Trust (GBTC) could cause Bitcoin’s price to plummet even further. The infusion of institutional investors into the GBTC Grayscale trust fund was one of the key drivers driving the rising trend of BTC.
Key Levels
Resistance Levels: $37,500, $35,000, $33,500
Support Levels: $32,000, $30,000, $28,000
BTC/USD Daily Chart: Ranging
BTC/USD Daily Chart
BTC continues to trade mixed. While there are attempts made over the last couple of days to bounce back, there is a lack of momentum in its price action. However, buyers are keeping alive the chances of seeing one more leg of rising from current levels to test $35,700 and the moving average (MA 50) respectively before a sharp corrective fall begins.
But the price will need to breach $33,500 from here to see an up move from here. The bulls are trying to move up but seem to lack strong follow-through buying. The relative strength index (RSI) is showing signs of rising towards its midline 50 upper range. Overall the $30,000 floor will need to be watched closely to decide whether one more leg of rising is still pending or the correction can come in without seeing this up move.
BTC/USD 4-Hour Chart: Ranging
BTC/USD 4-Hour Chart
On the 4-hour time frame, we can see that the price is moving sideways. However, we can see that the BTC/USD is also trying to break below the $32,000. A consecutive break below $32,000 should target $31,000 and $30,000. If this happens, we might be on the way towards a $28,800 level retest. If the BTC/USD fails to close below $32,000 then, we should see a further range play.
Price action is in a steady short-term consolidation. However, the momentum to the downside is starting to slow. Going by the 4 hour RSI, we could expect a possible attempt for a retest of the $35,000 handle. While to the downside, the previously established floor at $30,000 remains within reach. Given the market conditions, it would be a bit too early to call the direction in BTC/USD prices.
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