- Bitcoin price sticks to consolidation between $31,000 critical support and the stubborn resistance at $34,500.
- A golden cross pattern hints at Bitcoin exploring lower price levels before resuming the uptrend.
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
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)