The Bitcoin price analysis has been facing negativity in the past few weeks as bears took control of the market. Bitcoin and other cryptocurrencies were widely affected by the correction seen last week.
The correction was due after the Bitcoin price rose above $23,520 in early March; short-term holders of bitcoin cashed out their profits when the profit ratio peaked at 6.87%, which led to some Bitcoin being sold on exchanges. The selloff of these assets resulted in the correction last week.
Mining also played a part in this downfall, as miners converted their bitcoin into other cryptocurrencies or transferred them to exchanges due to a high number of transactions and low transaction fees which caused them to be unprofitable.
Secondly, some miners transferred their bitcoins to exchanges, possibly to pay expenses related to mining or to invest in other assets. Despite these two factors, the outlook for Bitcoin is still cautiously optimistic.
Institutional investors are taking notice of Bitcoin’s potential, with several high-profile companies announcing their investments in the cryptocurrency, such as Tesla and MicroStrategy.
Currently, the BTC/USD pair is trading at $21,771, with a loss of 1.88% from the previous close. BTC has dropped from its all-week-time high week of $23,520 to the current price level after a strong selloff amid profit-taking by holders and miners.
The support level for BTC/USD pair is $21,588, while the resistance level is at $22,198. The outlook for Bitcoin still remains as the buyers target the next resistance levels if the bullish momentum continues. However, the bears may still take control if the support levels are broken.
The technical indicators are negative as the 50-day SMA is currently below the 100-day and 200-day SMAs. The Moving average converges divergence (MACD) is currently in the negative zone, reflecting the bearish momentum. The relative strength index (RSI) is also in the oversold region at 37.47, suggesting further losses in the BTC/USD pair.
Overall, the Bitcoin price analysis suggests that the bears have taken control of the market as holders and miners cashed out profits and transferred BTC to exchanges.
The outlook for Bitcoin still remains cautiously optimistic, with institutional investors taking notice of its potential. The bulls are targeting the next resistance level of $22,198, which they must break if they are to regain control of the market.
