Bitcoin this week
BTC
pointers down
$19,497
Raise investor hopes and then leave them high and dry again.
Traders were most focused on pushing the price of bitcoin through the long-term resistance of the downtrendline, but according to Cointelegraph analyst Ray Salmond, “BTC price just consolidated on its way through the trendline, trading sideways as the price ranged between $18,500 and $24,500 in the last 114 days.”
At the time of writing, the price of BTC has continued to struggle at the $20,000 level and it is unclear if this level will remain support or not.
Data from network analytics firm Whalemap shows three price areas that investors should focus on.
Main BTC price support zones. Source: Whale Map
Whalemap told Cointelegraph: “So far, resistance at $20,380, which is due to whales accumulating ~20,020 BTC, is working well and the last rejection was almost exactly a dollar.”
Whale Map Mode:
“Our support remained unchanged after falling from $30,000. It is located at $19,174 and was formed on June 18, 2022 with a staggering 101,300 BTC in whale wallets. There is another resistance above $20,380 at $21,543. But first, we need to at least break $20,380.”
From a technical perspective, Bollinger Bands are capped on the daily chart, open interest in BTC futures is approaching an all-time high above 604,000, and the price is trading outside long-term trendline resistance, all signs that a directional move is in the process of forming. . .
Related: So, what if the price of bitcoin continues to fall? That’s why it’s time to pay attention
As shown in the chart below, investor risk appetite continues to decline and it is not surprising that risky assets are the first to see an outflow and are ignored by investors during a bear market.
Investors’ appetite for risk. Source: Bank of America Global Survey.
While BTC and Ethereum (
Ethereum
pointers down
$1324
Prices have ignored the recent volatility in the stock markets, and the US Federal Reserve policy and the possibility of another wave of strong selling in the stock markets could lead to the next phase of the cryptocurrency market.
What is the next step for bitcoin?
Right now, Bitcoin and the broader crypto market are essentially in an area where a combination of bullish and bearish factors could determine the next trend direction.
According to Delphi Digital, bitcoin is currently following the path of previous market cycles.
Bitcoin market cycle in 2018 vs. Bitcoin market cycle in 2020. Source: Delphi Digital.
Zooming in, we can see what Delphi Digital called “super similar to the 2018 cycle.”
The 2018 bitcoin market cycle compared to the 2022 bitcoin market cycle. Source: Delphi Digital
There are several indicators for Bitcoin, the crypto market and stocks that show convergence and support the possibility of recovery in the short term, but in general the overall trend is leaning towards the downside. If stocks rest for a bit and move higher, the close correlation between BTC, Ether, and the stock markets suggests a similar price behavior in cryptocurrencies.
With that said, the Bitcoin relief rally is likely to end at $27,500 where the 200-day moving average resides. The most encouraging action for Bitcoin in the short term is either to continue in the same range, keeping $20,000 and $18,400 as support, or a high volume break that removes the current 116-day range with a series of daily closes above the 25-high. range, 200 .
A possible 200-MA support reversal and a series of weekly higher highs on the candlestick chart would be early signs of a potential long-term bullish reversal, but this looks unlikely given the general headwind Bitcoin is facing.
