Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering below $17,000 the day after the dismal weekly close.
The largest cryptocurrency failed to show convincing signs of recovery after losing more than 25% in the previous week thanks to the crash that hit the FTX exchange.
This debacle was ongoing at the time of writing, as the revelations spread to other companies with significant exposure to the defunct exchange.
With little visible light at the end of the tunnel, BTC price action has unsurprisingly remained subdued.
Michael van de Poppe, founder and CEO of trading platform Eight, sums it up as “Markets Consolidation”.
“Let’s say we’re actually going to hit $10,000, after the terrible news we’ve had in the past weeks.”
Meanwhile, trader and analyst Rekt Capital warned of volatility support and resistance thanks to the weekly close, which is the lowest level for bitcoin in two years.
“These are the monthly BTC levels shown on the weekly timeframe,” he tweeted, along with a chart of the important focal levels.
“From this chart, we can see that $BTC made a fresh weekly close below the monthly level of $17,300. Initial signs of this level are turning into new resistance this week.”
Annotated BTC/USD chart. Source: Rekt Capital / Twitter
Other posts on the day warned of the potential for an “additional negative fuse” on BTC/USD while noting that historically, previous bear markets have been worse still in terms of the pair falling off cycle highs.
An interesting counterpoint came from Edward Snowden. In his own tweet, he indicated that he would be a buyer of BTC at current levels, a sentiment he last made public after the market crash via COVID-19 in March 2020.
“There’s still a lot of trouble ahead, but for the first time in a while I’m starting to itch to back off,” he said.
A second tweet stressed that the precedent was “not financial advice”.
The dollar gives a “perfect” path for Bitcoin to rise
Stocks offered a little respite for the cryptocurrency bulls on the day, as the S&P 500 and Nasdaq Composite fell 0.3% and 0.8%, respectively, within the first hour.
Related: Elon Musk Says BTC Will “Succeed” – 5 Things to Know in Bitcoin This Week
The US Dollar Index (DXY) continued its own consolidation with its rejection adding to the significant rebound in the previous weeks.
Popular trading account Game of Trades noted that the daily chart’s Relative Strength Index (RSI) for DXY has hit a new record low for 2022.
Annotated chart of the US Dollar Index (DXY). Source: Game of Trades / Twitter
“SPX is showing strength and DXY is falling,” wrote bullish Trader Bloodgood, another well-known trader on Twitter, in part of a new update the day.
“Perfect position to see some elevation.”
Annotated BTC/USD chart. Source: Bloodgood / Twitter
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