The recent positive sentiment in the crypto market has led to a somewhat temporary relief in the bearish market outlook. That comes after the crypto community received events such as El Salvador’s BTC adoption with open hands. However, the El Salvador move has some uncertainties since multiple financial institutions and analytical agencies have cited the ‘risks’ related to adopting BTC as a legal tender.
As much as the backlash might not impact Bitcoin’s price immediately, the weekend crypto monster seems to storm in the market. While publishing this content, Bitcoin trades 17% down on a two-day low as the market witnessed increase bears for now. At the moment, the flagship crypto coins have lost 10% since the past 24 hours to trade at $30,600.
BTC 4-Hour Chart
The $31,100 vital level has prevented drastic declines in the Bitcoin market in the recent trading sessions. However, a close beneath this level indicated extended warning signs. The bulls have had chances since the May 19 drops to $29,000. However, the increasing selling pressure might see Bitcoin challenging this defense in the coming trading sessions.
BTC Trading Waves
The MACD indicators failed to break over equilibrium as bears registered magnified selling pressure. At some point, the DMI (Directional Movement Index) indicated a bullish run as the leading cryptocurrency challenged the price ceiling at $35K. However, BTC experienced downward trends after the negative DMI line went over the positive DMI line, following a breakout denial. Also, the ADX shows bearish sentiment as it pointed north, confirming a resilient trend.
Any close beneath $28,000 might trigger another downtrend. Absences of a reliable support point beneath the said zone may see Bitcoin retracing to its late-January territory of $24,000, signifying a 23% decline. Keep in mind that the Visible Range denotes that BTC had some demand between $24K and $20K. With a continuous sell-off, buyers might join at this crucial level.
BTC’s failure to break over the $35,400 resistance saw crypto sellers dominating the market for the last few days. Increased selling pressure might see the flagship asset dropping to $28K, with chances to dip further. Failure to prevent losses at this territory might result in a retracement to the $24,000 level before buyers recuperate market control.
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