Price Analysis

Bitcoin Raising High, Is This Another Trap as BTC Price Primed To Fall Below $30K

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Jan 29, 2022

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Bitcoin price maintains a notable uptrend and is currently very close to hitting the $38,000 levels maintaining a 3% to 4% surge every new day. The local support levels are uplifting the price but the major resistance levels are pretty much distinct.

And hence only a valid breakout towards the upside can save the BTC price plunging down towards the lower support. 

On the other hand, Bitcoin continues to trend in the same fashion of surging a little followed by a notable plunge. The asset ever since smashed its highs close to $70,000 is following a notable downtrend.

The descending rally also included a couple of highs or to be specific descending peaks. Upon contact with the trend line, the asset plummets with a larger margin every time, and something similar is expected to happen at present. 

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The BTC price is ranging high and may hit the trend line shortly. But this may be yet another plot to trap the traders at the higher levels. As the asset is pre-programmed to hit the lower levels which fall around $30,000.

The levels around $39,700 are pretty crucial as the asset during the previous sell-off had recorded its closing levels around these levels. And hence reaching these levels a huge possibility of a drop surfaces the waters. 

In the short term, the price is comfortably trending along the uptrend line since the flip at the beginning of the pattern. Further, the trend flips to a notable downtrend during the formation of the pattern.

After observing 3 descending peaks such that each peak is lower than its previous peak, the 4th one may be fast approaching. Bitcoin may attempt to retest the conformation line and if it fails to break the resistance then it may be more bearish soon. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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