It looks like bitcoin will stay under the bearish pressure in the short term and could see steeper losses before catching a bid again
Bitcoin price extends its pullback from the 20-DMA that turned into resistance one week ago as the leading cryptocurrency by market capitalization continues to retreat from fresh all-time highs registered around $42,000 earlier this month. The BTCUSD pair was last seen at $31,260 and could threaten the $30,000 figure if the bearish pressure intensifies any time soon. This week’s lows arrive in the $30,800 area that provided support for the coin yesterday.
The digital currency is on the defensive these days as bitcoin miners started selling a large amount of the cryptocurrency for the first time since last autumn. Besides, demand for BTC has waned after the recent rally above $40,000 while investors turned cautious amid uncertainty surrounding an idea of how the new Biden Administration will view bitcoin and cryptocurrency markets in general.
It looks like bitcoin will stay under the bearish pressure in the short term and could see steeper losses before catching a bid again. In this scenario, the prices could get below the $30,000 figure for the first time since last Friday. If so, the $28,700 and $27,700 support levels will come into market focus. On the negative side, the digital coin has settled below the mentioned 20-daily moving average that arrives at $35,200 today. As long as the prices stay below this level, downside risks continue to persist.
On the upside, a recovery above the key moving average could pave the way toward the $38,000 figure, followed by the $40,000 psychological handle. However, a bullish scenario looks unlikely in the near term. On the four-hour timeframes, the BTCUSD pair has settled below the key moving averages while the RSI is pointing lower in the neutral territory, suggesting the cryptocurrency could struggle at this stage while staying below the $32,000 figure.