Bitcoin Loses Critical Level Below $23,000, Bears Prepare For New Assault?
Bitcoin has been slowly trending to the downside over this week.
The first cryptocurrency by market cap seems to have lost momentum
as uncertainty spills into the crypto market from legacy markets.
Related Reading: The Pelosi Effect? Ethereum Faces Headwinds Over
Area At $1,600 At the time of writing, Bitcoin trades at $22,600
with a 4% loss in the last 24 hours and a 1.2% loss over the past
seven days. The cryptocurrency has lost its 200 days simple moving
average (SMA) at $22,800. In the short term, recapturing this level
is crucial to maintain the bullish momentum. Bulls need to sustain
BTC’s price current levels and push beyond its 200 SMA to prevent
the cryptocurrency from re-testing previous support levels. Analyst
Caleb Franzen presented the chart below to show how BTC’s price was
rejected at a critical level. The cryptocurrency managed to hit the
top of the channel shown above and now seems poised to re-test the
lower level at $21,200. This level should operate as support in
order to stop a downside trend below $20,000. Data from Material
Indicators (MI) show over $20 million in bid (buy) orders for
Bitcoin between $22,200 to $22,400. Remains to be seen if these
orders will be able to push the bears back, below those levels, the
order book looks thin until $19,000. At the time of writing, there
are $16 million in buying orders at $19,000 which should act as the
final line of defense in case Bitcoin continues to trend to the
downside. Franzen said the following on BTC’s potential to see
further losses in the short term: Whether you want to call this a
parabolic trendline or a curved trendline is irrelevant to me.
Based on what I’ve heard from the analysts who use them, should we
be concerned about short-term momentum reversing for Bitcoin? I
don’t know (…). Markets can swing between both extremes of
sentiment/trend. (…) I think the magnitude & velocity of this
move has been too large. Will This Time Be Different For Bitcoin? A
different perspective for the price of Bitcoin shows that it is
currently trading just above its 200 weekly moving average (WMA) at
$22,300. The cryptocurrency has only lost this level 7 times since
its inception, said Yassine Elmandjra analyst at Ark Invest. Once
the cryptocurrency has reclaimed this level after a pronounced
loss, it often tends to the upside. On average, Elmandjra said,
Bitcoin records a 240% increase when this happens. Related Reading:
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However, BTC might not follow a similar trajectory immediately, the
cryptocurrency might face some bearish and sideways price action in
the meantime. The analyst said: On a relative basis, if this bear
market is as severe as the 2018 bear market, bitcoin could see more
downside. Bitcoin has corrected 72% relative to its all-time high.
Bitcoin usually finds global cyclical bottoms with a correction
greater than 80%.
から 8 2022 まで 9 2022
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