Bitcoin is the largest cryptocurrency by market capitalisation and appears to be at a critical point in its price movements. Bitcoin's 24-hour trading volume stands at $40.70 billion, indicating that there is still significant activity in the market. Although current market sentiment is bearish, the Fear & Greed Index shows a neutral score of 54, suggesting that the market may be in transition. We dive into Bitcoin technical analysis for this week below.
Bitcoin technical analysis
Key technical indicators such as the 50-day Simple Moving Average (SMA) and the 200-day SMA show a mix of bullish and bearish signals. The 50-day SMA is $29,663, just above the current price, suggesting that the market may experience some resistance. In contrast, the 200-day SMA is $26,794, well below the current price, suggesting a possible support layer if the price continues to fall.
The 14-day Relative Strength Index (RSI) is at 50.78, indicating a balance between buyers and sellers. In general, an RSI value above 70 is considered overbought, while a value below 30 is considered oversold. The current value suggests that the market is balanced, with no clear advantage for buyers or sellers. Based on these technical indicators, it is therefore difficult to make a Bitcoin price prediction.
Bitcoin's support and resistance levels and correlations
Bitcoin has three key resistance levels at $29,392, $29,586 and $29,774, which the price may encounter if it tries to rise. In addition, there are three support levels at $29,010, $28,822 and $28,628, which may help to stop any price declines.
In terms of correlation with other cryptocurrencies, Bitcoin is positively correlated with NEM, Ethereum and NEO. This means that if the price of Bitcoin rises, the prices of these other coins are also likely to rise. On the other hand, Bitcoin is negatively correlated with Bitcoin SV, TRON and Bitcoin Cash, meaning that if the price of Bitcoin rises, the prices of these coins are likely to fall.
Bitcoin price forecast and short-term outlook
As for the Bitcoin price forecast, it seems that Bitcoin will experience a quiet rise in the coming days. Forecasts from crypto experts suggest a rise to $29,527 on August 5, $30,169 on August 6, $30,810 on August 7, $31,457 on August 8, $32,352 on August 9, $33,248 on August 10 and $34,134 on August 11. Should this prediction come true, it would be good news for the Bitcon bulls.
Despite the current bearish sentiment, Bitcoin seems to be showing some stability, we can see from the technical indicators. There are signals pointing to a possible rebound in the price in the near future. However, it is important to note that experts' expectations are no guarantee of the future. Therefore, always do your own research on Bitcoin and do not invest money you cannot afford to lose.
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