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The Bitcoin price seems to be mired between the $33K and $36K levels with little movement either up or down. This represents an almost 50% decline from its all-time high registered in early May. And things look like getting slightly worse for the short term with the price sinking by around 4% over the past 24 hours from $34,500 to the $33,200 mark. As always, all other cryptocurrencies were affected and the recent bullish trend seems to have come to an abrupt halt.

The decline began yesterday when a red candle on the 4-hour chart brought the price down to $34,205. This further accelerated with a drop to the $33,205 level earlier today. There seems to be strong support at the $33,000 level but a break below that could also trigger a massive sell-off with the Bitcoin price easily testing the $30k mark which is another crucial level of support.

Bitcoin Price Short Term Forecast: Holding Support Before A Breakout?

After Monday’s correction where the Bitcoin price descended to the $34,500 price, many thought that the rally was over. However, the BTC price remained holding strong at this level with more buyers entering the market. The expected leg up back to the $36,000 mark did not materialize though and this morning, the price came crashing down to just above the $33,000 level.

This new scenario appears to confound previous bullish predictions where the Bitcoin price was expected to retest the $36,700 mark – a level last seen on June 19 almost three weeks ago. One has to observe the price movement now, as Bitcoin needs to remain above the $33,000 mark if it is still to be considered bullish. The next 24 hours will be crucial to maintain this bullish thesis.

A bearish scenario is looking extremely likely, however. If the drop below the $33,000 level happens then holders could be in for a rough ride as the price might easily drop to the $30-$31K levels. Selling pressure would then push the price down even further with the corresponding drop in confidence. Bitcoin is certainly quite far from the June 19 high of $40K and some could pass before that is achievable again.

More scrutiny and prospective regulation hampering BTC and crypto owners

New York became the latest US state to crack the whip on crypto making disclosure a legal requirement for holding public office. Although there is nothing inherently wrong in such a measure, it does put something of a damper on those who wish to enter the market. On the other hand, more organizations are accepting Bitcoin and other cryptocurrency as methods of payment, so the future doesn’t look too murky. One has to observe if BTC will hold above $33,000 and what its next move could be.

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