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BTC price analysis: BTC consolidates near $33K as retailers exit in droves

4 min read

TL;DR Breakdown

  • BTC price analysis shows BTC is currently experiencing a consolidated momentum near $33,000
  • BTC/USD may soon see an upward trend above $36,000
  • As retailers pull their bitcoins out of currency exchanges, the value of BTC decreases
Bitcoin price analysis: BTC consolidates near $33K as retailers exit in droves 1
Cryptocurrency heat map by Coin360

The BTC price has been consolidating near $32,000 as retailers exit the BTC market, thereby affecting volumes. BTC has recently seen a decline in demand from institutional investors and retail traders alike. BTC prices have fallen below the $35,000 mark, and there have been no signs of any breakout. The BTC price is now trading at $31,987 on Bitfinex.

BTC usage among retailers has been declining rapidly as well as per BTC price analysis. They sit on the sidelines so that future trajectory becomes clear. With fewer people using BTC, it becomes difficult for miners to keep up with transaction volume preventing more funds from being released into circulation.

The number of BTC held in the exchanges has been declining steadily ever since May 2021. The researchers say that much of this fall was due to an influx of institutional firms like Grayscale. BTC has fallen on the exchange reserve. Subsequently, TVL in the Defi platform has increased simultaneously. BTC price analysis suggests that this could be an indicator of a possible return to BTC’s previous highs among investors with different levels of risk appetite.

BTC price movement in the last 24 hours: Stagnation in price confuses investors

The BTC/USD pair faces a level of resistance around $31,000, reflecting how many investors have bought into the cryptocurrency at this point. It is believed how traders could be selling their Bitcoins to investors in hopes of re-accumulation.

BTC has been trending downward as of today, trading near the $31,725 level. It is down 4% for the day but with a 24-hour volume and capitalization that are both significantly reduced. Based on the volume to market cap ratio, it is evident that this asset is exhibiting a bearish trend. However, if the price moves above $40K, we may see an increase in bullish momentum as per BTC price analysis.

Some analysts believe that the Capital International Group’s stake in MicroStrategy is a signal of strong interest among institutional investors. The investment group bought 12.3% of shares in MicroStrategy, which currently holds 105,084 Bitcoins on its books. These are signs of an indirect BTC exposure by the firm.

Early bear phases are usually punctuated by fundamental triggers that do not receive immediate attention from the markets. BTC price analysis shows how during these times, savvy investors accumulate shares, and prices eventually catch up to the fundamentals.

BTC/USD 4-hour chart: Technical indicators ready to flash a sign?

Bitcoin price analysis: BTC consolidates near $33K as retailers exit in droves 2
BTC price chart by TradingView

The charts indicate a long tail showing the defenses built by the bulls against any possible bearish action in the near future. Technical analysis shows sellers lining up near the 20-day exponential moving average. The price can decline towards $31,000 if any selling rally intensifies. In case of extreme selling, the next major support is at $20,000 as per BTC price analysis.

The point is that, in the unlikely event that bulls thrust the price over its 20-day EMA (currently at $32,971), it could be an indication of a possible bullish reversal. If the price breakout tomorrow, it could push the pair up to $36,670. And if this happens, then our currency could rise toward a resistance zone of between $41,330 and $42,451.67.

The RSI of the asset is near 41.57, and it falls within the neutral zone – a negative slope formation hinting at a potential downside for the price action in this area.

BTC price analysis conclusion: A big move in BTC/USD imminent?

BTC’s weekly chart suggests that the price is heading downward, but on a daily basis, it has bounced inside of a consolidation zone and is trying to reverse back upward.

BTC’s price is hovering below its 50 and 100-day straight moving average, with a negative crossover in the past. BTC’s 50-day line near $35457 makes it currently resistant to the price.

BTC price analysis shows BTC’s price is rising quickly and can jump above 50 and 100 DMA resistance, making it possible for the BTC to reach new highs.

BTC’s price fluctuates, but it has remained higher than $30000 since the January downturn. The BTC uptrend may resume if the currency hits a temporary peak of $37K.

The United States Consumer Price Index (CPI) surged 0.9% in June 2021 over the previous month and 5.4% from a year earlier, the fastest pace since 2009. However, BTC’s response to the spike in inflation has increased some doubts about its potential as an inflation hedge.

Disclaimer. The information provided is not trading advice. holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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