The latest study concludes that Bitcoin (BTC) may fall to $ 29,000 or lower, but the price action is “better” than last week.
In a recent market update on Friday, Decentrader trading package analysts said the BTC price action is finally showing “green shoots of optimism.”
A Look At Bitcoins ‘Short Term Relief Recovery’
After a difficult week with BTC / USD falling just below $ 33,000, market analysis is now focusing on the possible results of the range movement seen in recent days.
Decentrader now has reasons for cautious optimism, which was not there a week ago.
Analysts concluded: “We believe that the current shift in the derivatives landscape and the background to extremely negative sentiment increase the likelihood of at least a short-term improvement.”
The reason lies in the factors that have not previously been completely «reset» as prices have fallen, especially in the structure of the derivatives markets. This includes falling open interest rates to less speculative levels, as well as deepening negative financing rates.
As Cointelegraph explained, negative prices are in line with the general market mood that requires more losses – often ideal conditions for higher prices.
“Now we are also starting to see significant buyers emerge, leading to a potential bearish to bullish reversal of the higher timeframe trend,” says the market update about further positive pressure on available bitcoin supply.
Sales in general, although uncharacteristic of beef markets, suggest that those behind it are making a loss.
Open interest rate chart for bitcoin futures. Source: Coinglass
$ 29,000 or less is considered less likely
As of now, expectations for support are a retracement range of $ 29,650, which will only play its role if any of the other ranges above $ 30,000 do not hold.
Related: Bitcoin enters the value zone when the BTC price indicator turns green again
Meanwhile, however, the resistance is placed between $ 38,850 and $ 39,700, according to Decenttrader, followed by a large “empty” section of $ 47,900 and then $ 53,400.
“Support remains at $ 32,700 for now, although there are some arguments that the price has reached that level, with the week only falling $ 300 on Monday,” the update said.
“Apart from this level, the next support is just under $ 30K, and $ 29,650 leaves the door open for a possible seizure of liquidity below $ 30K.”
According to finance, sentiment remains in “extreme fear” according to the Crypto Fear & Greed Index, which now competes with the bottom of the bear market in 2018 and the coronavirus crash in March 2020 in record high terms.