‘No Sign Bitcoin Has Bottomed’ as Data Warns BTC’s Downward Price Trend Continues

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Bitcoin (BTC) received a welcome boost at Wall Street’s January 31 open as new research painted a bleak picture for near-term price action.

BTC/USD 1 month candle chart (Bitstamp). Source: TradingViewTrader “not interested” in long positions below $38,500

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing towards $38,000 on Monday, reversing a correction that occurred immediately after Sunday’s weekly close.

With stocks giving bulls some relief, many analysts remained indifferent to Bitcoin while higher levels near $40,000 remained unchallenged.

“Bitcoin is going wild and fighting resistance, while volume remains low overall,” Cointelegraph contributor Michaël van de Poppe summed up after his latest YouTube update.

“As noted below $38.5000 not much interest in long entries unless longer timeframe bullish divergences occur. $37.5000 is a minimum first step.”

Fellow trader Pentoshi added that a suitable buy-in zone is immediately below current levels.

“I think you can probably bid 33-36k. And increase And see the yearly open on BTC in Feb. Lose 33k on HTF basis and cut it,” he considered as part of the day’s Twitter comments .

At the time of writing, BTC/USD was trading at around $37,700, up $1,100 from previous lows.

Expect the “range” to continue for BTC

Other sources were more gloomy on the future outlook for Bitcoin.

Related: Bitcoin price is down 20% so far in 2022 after worst January since 2018

Highlighting signs from its set of on- and off-chain Trend Precognition indicators, the Material Indicators analysis suite revealed that no significant shifts in tact had occurred from the start of Bitcoin’s decline in November.

“Zoom in on a MACRO view of Bitcoin nearing the monthly close. Trend Precognition shows no signs that BTC has bottomed. Expect a range as the downtrend continues,” he said. he commented on Twitter.

Such an outlook joins those who believe that a lower low is needed for Bitcoin to establish a convincing floor and start tackling resistance.

Previously, another monitoring resource, Whalemap, identified $27,000 as an important area of ​​support should the current range give way.

#Bitcoin Macro Levels by Volume Profile (The On-Chain Version)

27k seems to be the closest support in the event of a loss of 34k pic.twitter.com/BgLQ2FZaO2

— whale map (@whale_map) January 27, 2022

Meanwhile, Cointelegraph has produced a list of potential price triggers for the week ahead.

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