29K and 40K, or 37,500 and 42K?
Bitcoin price traded below $29,700 this morning before its return above 31,00 and rejected from 32,650. This means the first 3.6% fall, then a 9.75% rise from the daily low and again more than 8% discount from the daily peak; however, it is 1.3% higher than the daily open at the current level. The increasing BTC price and its fall were almost coordinated with growth and decline on Wall Street. This short-term harmony means an overall market sentiment drives the price and investors' feeling to buy or cash out.
In the short term, buying in deep positions stopped the selling pressure. However, as it moves down and up in harmony with stock markets, then to guess the next move in the overall cryptocurrencies market, we also have to follow the stock markets trend. On the other hand, apart from the movements of financial markets, bitcoin bulls still can remain under pressure for this week as its network profitability falls by ~10%. Also, stablecoin supply contraction and many doubts about their future after last week's reports of less institutional investments in the digital currencies market all handed to put more pressure on BTC and Altcoins prices.
If you plan to invest in the BTC or trade, depending on short or long-term plans, you can find the best points to enter and exit the market. The daily chart shows that 37,500 is the key pivot point and as long as it is trading under this level, buy positions will be riskier. In the short term, for a few days and weeks, still, technically, it remains bearish.
On the other hand and in the long term outlook and as you can see in the below weekly figure, we have strong support at 29,000 US dollars, and any price close to this level sounds like a buying opportunity with a calculated stop-loss. If you are looking for a safer investment, then above 40K (20 Weekly moving average), where long-term trends can change, can be a better buy opportunity.
