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Fear gripped investors and traders in light of recent adverse market action. Bitcoin, the best-known cryptocurrency, has come under the greatest selling pressure since the crisis in June and July.

With a high of $22,400 on September 13 and a low of $18,790 today, Bitcoin has fallen almost 8%. The price fell 13.31 percent.

This too is due to unfavorable economic developments in the United States, as well as recent price fluctuations. As of this writing, the latest sale has lost none of its steam.

Price information for the past few days puts Bitcoin between $19,344 and $18,346. Financial market participants should not be interested in these figures.

Source: TradingView.com

Bitcoin must go back

Bitcoin’s attempted comeback resulted in the formation of a double triangle, which is harmonically related to the XABCD pattern.

This pattern may indicate a reversal where buyers can enter at a discount and sellers can make a profit. However, that was not the situation.

Bitcoin may retest the crucial $20,000 territory ahead if it pulls back to the $18,000 level.

BTC is currently selling at a significant discount from the 78.60 Fib level. Being so far from the important psychological threshold of $20,000, this price may hinder any further rebound.

Investor confidence can only continue to rise with the aforementioned price in place.

A reversal can only occur if the bulls step in to buy the ongoing decline and reverse the downtrend.

Bitcoin price may be able to retest the $20,500 resistance level if the aforementioned hypothetical event occurs. The 61.80 Fib level is where the aforementioned resistance is.

However, Bitcoin’s correlation with the broader financial landscape is not advantageous. Bitcoin’s close correlation to the S&P 500 and NASDAQ indices makes it difficult to restore upward momentum.

BTC needs all the energy it can muster to normalize

Bitcoin’s rebound is in jeopardy as the financial sector as a whole sees a steep decline. In fact, it may not even reach the mentioned $20,500 resistance.

According to renowned cryptanalyst @woonomics, Bitcoin has yet to bottom. By evaluating Bitcoin’s past and present performance, he discovered that only 52% of all coins are under water.

Bitcoin’s previous lows were 61%, 67%, and 57%. The data he provided indicates that if Bitcoin bottomed again, it would not be at $18,000.

For Bitcoin to emerge from this predicament, the financial sector as a whole must rebound from the current slump to restore investor and trader confidence.

At the time of this writing, the Stoch RSI values ​​are converging which may give a slight increase in the price.

However, with the current market momentum following a strong downward trend, a recovery is unlikely.

BTC total market cap at $359 billion on the daily chart | Source: TradingView.com

Featured image Pixabay, Chart: TradingView.com
(The analysis represents the author's personal views and should not be construed as investment advice).



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