Will Bitcoin Still In Trouble Over The Next Week? Discover it here

Despite a small rally in the last few hours, the truth is that the outlook is not looking good for the price of Bitcoin, as the bearish force is quite dominant and is generating quite a few problems in the short term.

And it is that as the largest cryptocurrency falls, fear is dissipating throughout the crypto market, creating a wave of uncertainty that does not seem to find bottom.

At the time of this writing, BTC is trading at $ 41,939.46, accumulating a slight gain of 2.27% in the last 24 hours, but maintaining a loss of 11.56% in the last 7 days.

The Bitcoin sentiment indicator went into the extreme fear zone. Although this can always cause problems in the short term, generally the strong hands that trust this currency accumulate more when fear takes over the market, and we can confirm this in the following paragraphs.

Generally, large investors take advantage of these moments of low prices to continue accumulating, because they know that when fear is taking over the market, most of the weak hands have released their coins, and underneath there is only a capital cushion determined to continue on. the boat, because they have done a thorough investigation to make that investment.

In the weekly summary of CryptoQuant we see how this is in evidence. Metrics related to demand and supply are mostly bullish, as are those that track whale behavior.

However, technical oscillators are bearish, as they track more short-term behavior, and Bitcoin is undoubtedly in trouble.

But is what is happening really worrying? Let’s find out with the following technical analysis.

Technical analysis: Bitcoin is in trouble, losses could spread further

In the weekly time frame BTC vs USDT we see that the price is about to close a candle with a great bearish force, and crossing a quite important support, located at $ 43,000.

This support is the neck line of a Shoulder Head Shoulder formation, which heralds the change in trend.

Now clearly the bears are in control and it looks like they could push the price towards the next support, located at $ 39,000.

There is still a chance that the breakout of the support will be invalidated, seeing a big bullish force next week. At the moment, this is not very likely.

But let’s go further, and put the short term aside.

We are in a necessary corrective process, but the bullish force is still incredibly dominant.

As we could already see, the whales continue to accumulate, and the supply continues to decline. It really is highly unlikely that the bull market is over.

To think that the bullrun is over, the support at $ 32,200 must be crossed, and for now this scenario is not even close to happening.

However, we must be quite cautious at the present time. Getting on the boat right now can be a very high risk investment, and it can only be assimilated if you have made a correct evaluation of this asset and its current state.

Bitcoin is in trouble in the short term, but the bull run is unlikely to be over. ‌Source: ‌ ‌‌TradingView‌.‌ ‌ ‌

The short-term trend is undoubtedly bearish

On the daily chart we can clearly see how Bitcoin is in trouble in the short term.

The great bearish force of the last few days has reaffirmed that the bears are in control, and this will not change until higher and higher lows begin to be manufactured.

On January 6, the price found support at $ 40,750, and although it is quite likely that we will see a bullish rally in the next hours / days, it is most likely that this is simply to pick up supply and continue falling.

The only way to think that a fairly large rally is really going to occur is that in the next dip the sellers show exhaustion. Otherwise, we could see Bitcoin losing support at $ 40,750, and looking for at least $ 38,200.

BTC daily chart ‌vs‌ ‌USDT.‌ ‌Source: ‌ ‌‌TradingView‌.‌ ‌ ‌
BTC daily chart ‌vs‌ ‌USDT.‌ ‌Source: ‌ ‌‌TradingView‌.‌ ‌ ‌

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Will Bitcoin Still In Trouble Over The Next Week? Discover it here

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