Bitcoin Price Prediction: Down But Not Out

Summary:

Bitcoin price has dropped by over 50% since hitting its all-time high in mid-April. A return of China's Bitcoin miners may boost the sentiment.

Bitcoin price has declined by over 50% since hitting its all-time high in mid-April. Notably, China’s crackdown on cryptocurrency mining has been one of the key underlying factors.

While this has triggered concerns over the possibility of a crypto winter, investors should not write off its rebound just yet. A return of China’s Bitcoin miners in the online space is likely to boost the sentiment on this financial asset. In the near term, the focus is on the US retail sales data.

BTCUSD technical analysis

Bitcoin price has extended its losses from the previous session ahead of the US retail sales. Since Monday, it has dropped by close to 10%. At the time of writing, it was down by 1.27% at 31,445.07. Besides, it has declined by 23.995 over the past month.

On a 4-hour chart, the leading cryptocurrency is trading below the 25 and 50-day exponential moving averages. In the near term, I expect Bitcoin price to continue finding support at 31,022.83. As a reaction to the retail sales, the bears may manage to retest and pass the crucial support level of 30,000. If that happens, the next target will be at June’s low of 28,647.17.

On the flip side, lower-than-expected retail sales numbers may have the crypto rise to find some resistance along the 50-day EMA at 32,877.44. Past that level, the bulls will be eyeing the psychological level of 34,000.