Bitcoin prices have been falling for the past seven weeks, and market saturation has already peaked after the global coronavirus epidemic collapsed. This could pave the way for price recovery, but the potential jump in bitcoin is expected to be very limited.
According to the Quinn Desk, bitcoin buyers on Friday reacted to the creation of conditions for saturation of the market for this digital currency and raised its price above $ 30,000. However, it seems that the possible upward movement of bitcoin will be limited in the future and this digital currency will face resistance at $ 33,000 and $ 35,000.
Impulse indicators, which measure the speed of price changes, continue to show negative signs in the daily, weekly and monthly views of bitcoin; This usually indicates a period of low or even negative return. In addition, according to the history of bitcoin, the return of this digital currency was negative for the first time in 2014 for seven consecutive weeks. This factor also confirms that the acceleration in the price of bitcoin is currently declining.
Bitcoin is already approaching support for its 200-week moving average (MA 200) at around $ 21,800. The closest support for this digital currency is between $ 27,000 and $ 30,000, which could stabilize price movements over the next few days.
Also on Thursday, short-term signs appeared on the Bitcoin chart, which were against the downward trend. These types of signs usually make the price survive a limited jump.
For example, the relative strength index (RSI) in the weekly outlook for the bitcoin market reached its lowest level in the sales saturation zone since March 2020. However, the strong resistance of this digital currency and the negative signs in the impulse indices may further limit its possible upward trend.
The publication Bitcoin Price Analysis: Saturation in sales has reached its peak since the Crown Epidemic first appeared in digital currency.