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This is the Level BTC Needs to Break to Reverse the Downtrend (Bitcoin Price Analysis)

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Bitcoin’s downtrend has stalled after a rapid fall from $32K following the bear flag breakout. The range of 2017 all-time highs in the $17-20,000 range acts as strong support, leading the price to bounce back to $24,000 and possibly a significant $30,000 resistance level.

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However, the cryptocurrency will also have to break above the 50-day moving average before retesting the $30k level.

Technical analysis

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By Edris

Daily chart

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The price is showing signs of a reversal after printing several bullish candles on the daily timeframe. If the mentioned levels are retested and BTC is rejected down, this could send the cryptocurrency into a further negative spiral.

On the other hand, if the bearish momentum works at current rates, another impulsive down move could start, pushing the market beyond the current support area towards $15k. However, the most recent price action makes this particular scenario less likely.

Source: Trading View

4 hour chart

On the 4 hours time frame, it is clear that the price is forming a down channel in the $17K-$20K support area, indicating a possible rebound as the pattern can be seen as a sign of a bullish reversal.

The RSI oscillator also signaled a bullish divergence between the last two lows of the channel, adding to the likelihood. If the price rebounds from this level and confirms the breakout, further movement towards the $24K resistance level can be expected.

On the other hand, if the price fails to complete the pullback and falls back inside the channel, the pattern will be considered a failure. This could lead to increased selling pressure and a break below the $17K-$20K support area followed by a rapid fall towards the $15K zone.

btcusd4h_chart23062022
Source: Trading View

Sentiment Analysis

By Edris

Bitcoin recharge rates

Over the past few months, the market has experienced a long and intense downtrend, and this price collapse has taken its toll on sentiment. This is definitely a bearish trend and is accompanied by negative funding rates in the perpetual futures market, indicating that traders are aggressively selling BTC as they constantly expect lower prices.

However, these periods of negative funding rates create a decent chance of a short squeeze that starts after a bullish price reversal and a short liquidation cascade. These short squeezes usually occur at the bottom of the price and initiate a bullish phase as the price rises and creates strong bullish momentum.

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Source: CryptoQuant
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Disclaimer: The information found on Cryptooshalais the property of the cited authors. It does not represent CryptoPotato’s opinion on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.






Credit : cryptopotato.com

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