Bitcoin taps support at $33k, hints at a near-term upside breakout
Bitcoin has been recording losses for the past few days. The big bull shredded about $13,000 of its price, a bear pattern that was last seen in October of last year. Indicators are now hinting that the bear market is taking control and that the dips are expected to become even more intense. But this possibility hasn’t hindered the market from testing support and replenishing gains. Over the past 24 hours, Bitcoin bulls made a commendable attempt to correct prices with an upward rally.
As incoming volume surged, Bitcoin, which had been losing momentum around the $31k level where it traded for most of yesterday, managed to make an up climb that sent it to $33,100. Bitcoin faced rejection around $33,400 and soon corrected downwards.
Bitcoin bulls must hold pressure at the new support in order to kickstart a bullish price correction going forward. With resistance forming around the $33,500 and $34,000 levels, an upside breakout in the near-term is potentially possible. Bitcoin may also revisit the $30,000 support level if the bullish momentum isn’t sustained.
Meanwhile, market indicators are mirroring down the possibilities of a long-term bear market. After yesterday’s bearish close, the bear candle hints that the bears may apply even more pressure going forward. Traders and analysts have expressed interest in buying the dips or securing their spot in the altcoin market, while collectively agreeing that the incoming market dump could be huge.
But this downtrend is also likely to be temporary, as bears have mostly controlled daily market movement, but have also failed to sustain the downward momentum on weekly timeframes, this is according to the ADX market trend analyzing tool. This has created an entry point for the bulls to key in at any given opportunity.
It is important to keep in mind that the year has not matured enough for the biggest bullish events to be recorded in the Bitcoin market. Although January introduced the market to a highly promising Bitcoin before the bears arrived, there are more potentially bullish fundamentals that are yet to be tapped.
One of these includes the impact of the current U.S government. Like the previous one, the consistent printing of fiat currencies is an event that might be in motion for a long period of time. Within that timeframe, inflation is bound to kick in and Bitcoin as the alternative store of value is a market that could continue to boom. Key players like Elon Musk and other traditional investors are expected to make an entry into the market as time goes on. All of these and many more will give Bitcoin a much-needed boost in both price and market value.
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