The entire crypto market is going through uncertainty. While the Bitcoin leaders continue to promote Bitcoin and blockchain technology, the BTC price is not in sync with its real-world growth.
Bitcoin has rejected sharply from the $43,000 level a week ago, and since then, the price has gone downhill. Lately, after a short sharp upward movement, the BTC was again rejected terribly from the $40,500 level and continues to create new resistance at the lower price level.
Today, BTC was again unable to breach the local resistance of $42K and is currently holding below major support. Major technical indicators are also in sync with a short-term bearish trend of Bitcoin. The relative Strength Index (RSI), an indicator that precisely shows the overbought and oversold situation in the market, is currently going downward. In addition, the 44 days EMA, a popular indicator to measure overall market sentiment, shows holding above the Bitcoin price. It reveals that the bearish trend could still last before the bulls are over.
The total crypto market cap is also holding below a major support line. In 1 day chart, the new candles are forming below this critical support level. If the BTC price could bounce back from the current level to break the $42K resistance, we can see a healthy market recovery.
In the opposite scenario, BTC’s price is bound to go as low as $34,000 before changing the trend. $34K is the strongest support, and the volume profile reveals a high interest of buyers around this level.
The crypto market has been going through an extreme fear zone for a few days, and most of the major cryptocurrencies are not performing well. The entire market is looking for the Bitcoin price to retrace and breakout upward to decide the future course of movement.