Bitcoin (BTC) is trading at $26,656, down 1% on the day and having increased more than 6% over the last 30 days. The BTC price spent the last week trying to cross above the $28,000 mark seen in the early days of October. Unfortunately, it lost this position when it was rejected by supplier congestion around the same level.
Over the weekend, the big crypto mostly traded sideways, which also happened during the previous several weekends. The price fluctuated between $27,500 and $28,000 for the most part.
Bitcoin is, however, bearish in the medium term as it trades 10% lower over the last three months and 8% below its price half a year ago. Could this be sentiment preventing BTC from scaling higher?
BTC Faces Stiff Resistance from the SMAs
At the time of writing, the pioneer cryptocurrency was facing resistance from the $28,100 level, embraced by both the 100-day Simple Moving Average (SMA) and the 200-day SMA. Bulls are fighting to push the price above this level.
As such, decisive daily candlestick close above this level would clear the path for a run up toward the much coveted $30,000 level. This would represent an 8% uptick from the current price.
Unfortunately, Bitcoin’s upside could be caped here in the short-term to the long-term. Note that the price has been rejected from this level twice this year. The first one was in April when the Bitcoin price turned away from the $31,100 high dropping 16% toward the $25,000 psychological level.
This also happened in August when the price of the bellwether cryptocurrency plummetted 16%. Again, from highs of around $30,700 to $25,000. This means that even if bulls succeed in pushing Bitcoin toward the $30,000 psychological level, supplier congestion from this area is likely to push it lower again.
BTC / USD Daily Chart
That notwithstanding, the market sentiments remained bearish as the Stochastic RSI moved downward away from the overbought region. The price strength at 57 suggested that the bears had begun returning to the scene.
Similarly, the moving averages had just sent a bearish signal on the same daily chart. This happened during the early trading Asian trading hours when the 200-day SMA crossed below the fast-moving 100-day SMA, indicating the start of a downtrend.
Therefore, a daily candlestick close below the $27,600 support level, embraced by the ascending trendline, could be detrimental to the BTC bulls. Such a move would see the price drop to seek solace from the 50-day SMA at $26,642 before dropping further to retest the $25,000 support level. This would constitute a 9% decline from the current price.
This is where Bitcoin’s downside could be capped giving the buyers an opportunity to regroup and accumulate more at a discount before kickstarting another recovery.
The post Bitcoin price prediction: BTC Bulls Seek a Return To $40,000 But $30K Remains a Stiff Hurdle appeared first on Analytics Insight.
Source: https://www.analyticsinsight.net/bitcoin-price-prediction-btc-bulls-seek-a-return-to-40000-but-30k-remains-a-stiff-hurdle/