Bitcoin Price Analysis: BTC Price Faces Downside Risk Below $35,000 On Weekly Chart

By Rekha chauhan
May 7, 2022 Updated May 7, 2022
Best In

Earn

Telegram

Bitcoin-1

BTC price traded with a cautious tone as the sell-off cools off on Saturday. It seems the sellers look exhausted, as the price manages to reclaim $36,000. In a broader crypto market selling spree, ETH is down nearly 6% as compared to a decline of 8% in BTC.

  • BTC sell-off stabilizes and trades flat on Saturday; locks 8% losses on weekly basis.
  • More downside is expected in the price breaks below $35,000 this week.
  • A bounce-back looks diminished as the sell-side volume deepens.

As of publication time, BTC/USD is exchanging hands at $35,979.07, down 0.08% for the day. According to the Coinmarketcap,  the pioneer crypto coin is sustaining a 24-hour trading volume of $34,647,973,885.

BTC price struggles to hold the support zone

On the weekly chart, the BTC price is under the medium-term downtrend, although since the beginning of the New Year it consolidate in a short-term trading range of $48,000 and $36,000, with few hiccups in between. In addition to that, the 50-day ema (Exponential Moving Average) plays a crucial role in deciding the trend for investors.

In July BTC pierced the moving average and recorded a jump toward record highs. Further, as soon the price sliced 50-day ema, it tested swing lows extending from $32,000 to $35,000.

The breakage of the bullish slopping line would invalidate any bullish argument for the asset so far. A weekly close below $35, 0000 would trigger a key level to amplify selling towards $26,000.

On the flip side, Now as we can see the formation of higher lows since the week ended on July 19 suggests it could be the time for a technical bounce back. If that comes true then BTC price would attempt to take out the $42,000 in the coming few sessions if not immediately.

Technical indicator:

RSI: The relative strength index (RSI) trades below-average line at 37.47, which indicates an extension of a  downswing in the price.

Volume oscillator: The upside tick rules out in the favor of bears.

 

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Next Story