As predicted well before, the current month’s close is extremely important for the Bitcoin price rally. The price is testing the pivotal levels and showcasing a huge tendency to ignite a notable bull run. But at the same time, a drastic plunge may also make its way out. This may drag the price towards the much-awaited target of around $30,000.
The BTC price had a pretty bearish close, the past week which is impacting the current trend. The asset had to close above the strong support area of around $38,485 to maintain the uptrend. Yet woefully, the price closed much below $38,000, recording a bearish close. The asset is attempting to get through these levels which clearly signifies the failure of the Bitcoin bulls to uplift above $40,000.
Bitcoin price in a larger time frame is extremely bearish. The formation of Doji candles this month showcases a strong brawl between the buyers and sellers. Additionally, a selling Doji candle may signify a trend reversal. This could flip the bears before the beginning of the next month’s trade. However, the technicals point out a completely diverse scenario.
The monthly MACD showcases an accumulation of a selling volume from the past month and pops out a bearish signal. This signal is let out for the first time in recent history and hence one can expect a significant volume of the drain. On the other hand, the RSI is also heading strongly towards the middle bands and failing to divert from the downtrend.
The BTC price closing the monthly trade below $37,000, which is the 21-day EMA level, is flashing a bearish signal. The price is forming lower highs and lows and in the worst cases may plunge towards the $10K lows too. However, if Bitcoin needs to close a bullish note then it needs to close above $40,000 or at least above the $38,500 price zone.