Bears continue to exert strong selling pressure above $ 38,000. Indicators, however, are in favor of Bitcoin (BTC) at $ 40,000 in the coming days.
The 38,000 USD: a temporary blockage?
Bitcoin has climbed to $ 38,350 today before falling back to $ 37,375 at the time of writing. The bulls fail to break through the resistance zone of $ 38,300 - $ 38,400.
The net flow of Bitcoin on the exchanges is currently negative; investors could therefore have entered a phase of accumulation which, logically, should allow the bulls to break the current resistance preventing them from continuing their races towards the 40,000 USD.
Bitcoin's daily RSI (14) remains at the gates of the bullish zone, although BTC is now trading above $ 37,000.
The bulls therefore have some margin, before BTC markets are overbought on a daily basis.
According to data from CryptoQuant, the value of the Miner's position index (MPI) has decreased. In the short term, the pressure from the miners should be low.
All these factors converge on a BTC which should reach 40,000 USD in the next few days.
A step-by-step recovery
Bitcoin regained $ 34,000, then $ 35,000, then held above $ 37,000 this week, as Ether (ETH) hit new ATHs.
The top 10 cryptos in terms of cap are currently in the green. Is Bitcoin pulling crypto markets up or taking advantage of their current 'form' - possibly both?
Bitcoin could benefit from the entry of new institutions if MicroStrategy’s recent pitch on BTC to an audience of more than 1,400 companies is successful.
The $ 30,000 seems a long way off; a massive sell-off, however, could quickly bring BTC back to that level, especially if the bulls fail to break resistance above $ 38,000. The bullish rally has been on a hiatus for just over 3 weeks now. Its recovery involves a BTC going back above 40,000 USD and re-attacking its ATH at 42,000 USD. BTC failed to close January 2021 at $ 48,000 as PlanBists had hoped. But better late than never !
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