Bitcoin has been cooling off in the past week or so, taking us down to the mid $30,000 level in the process.
A strong resistance level is beginning to form at the top end of $30,000, and if Bitcoin can’t push through, we could be looking at a drop all the way down to $31,000 in the next few days.
This is a huge move for Bitcoin, so we need all the bulls out in force if Bitcoin is to push through the resistance.
Can Bitcoin Survive?
Bitcoin has an awful lot going for it right now, with massive institutions buying up huge swathes of tokens, causing supply shortages.
This reduction in supply and increase in demand has been driving the price higher and higher over the past few weeks, and this pressure is showing no real sign of cooling off.
This is the biggest saving grace for this little dip right now, for without this factor, we’d be fully expecting a larger correction.
While I still firmly believe that the bullishness is dying out and that we’re looking at Bitcoin sinking down to $12,000 by May 2022, it still has some life left in it.
There’s a very strong support level sat just above $30,000, so if Bitcoin does fail to break through the resistance, this support level will prop Bitcoin up nicely.
But, right now all eyes are on the resistance at $38,130.
If the bulls can muster enough strength to blast Bitcoin through convincingly, Bitcoin could retake the $40,000 level before the end of the week.
It’s going to take a huge punch to make it through, as we’ve seen the past 3 attempts to break this resistance level fail.
Not Enough Legs
Bitcoin has gone through this resistance level twice in history, both times falling back down within a couple of days.
The first time, we saw Bitcoin break through the level for 5 days, taking us to a new all-time high, while the second push through lasted just 2 days and saw Bitcoin get nowhere near a new all-time high.
This hints that the buying momentum appears to run out of legs once it gets past, unable to stave off the bears, resulting in a push back below the resistance.
If we do see Bitcoin break through the resistance, it would come as no surprise if it’s short lived and we dip back below the level once more.
If this does happen, then you should be putting plans in place to prepare for the end of the bullishness.
While many still believe the bullishness is still strong and that we’ve got a long way to go, the signs that the bulls are weakening are deafening.
A Short Breach is a Fail
If Bitcoin is to survive and continue its upward trend, we need Bitcoin to break through the resistance convincingly.
It then needs to push on to a new all-time high, or at least get very close, without falling back below the resistance for a good week or so.
If these conditions cannot be met, then we can consider the level breach as a failure and a test of the $30,000 support level back on the cards.
Failure of this support would spell disaster for the long-term price of Bitcoin, meaning that the $12,000 prediction for May 2022 could very well be on the cards.
All eyes are on the resistance level right now!