Following 14% Correction in a Week, Is There More Pain Ahead for BTC? (Bitcoin Price Analysis)
The most recent outlook for Bitcoin is not overly promising, as the price has been rejected from a key technical resistance level and is breaking below support levels. The recent rebound from the $20K area appears to have been just another mid-bear market bull trap.
Technical Analysis
The Daily Chart
The price has been plummeting over the last few days after getting rejected from the $24K resistance level for the third time. The 100-day 出售和存储加密货币 Bitcoin (BTC) moving average, currently located at $24K, has also played a role in pushing the price down.
Currently, Bitcoin 出售和存储加密货币 Bitcoin (BTC) is trading below the 50-day moving average after impulsively breaking it to the downside and has failed to rise back above it. The next technical support would be the significant $20K level, and in case of a bearish breakout below it, another huge drop towards the $15K area could be expected.
The 4-Hour Chart
On the 4-hour timeframe, the price has been rejected from the higher boundary of the large bearish flag for the fourth time. A direct result is breaking below the bullish trendline, which has been holding the price over recent weeks. Currently, the lower boundary of the flag is acting as a support, but considering the price action, a breakout below it seems likely. This is a bearish flag pattern that tends to get broken to the downside after 3 or more top touches.
The RSI indicator has also just recovered from the oversold state, but it is still showing values below 50, indicating that the bears are in control. As a result, a bearish breakout and continuation towards the $18K low and beyond seems like the most probable scenario in the short term.
On-chain Analysis
Bitcoin Spent Output Value Bands
In recent weeks, large amounts of coins have been changing hands, 出售和存储加密货币 Bitcoin (BTC) as the Spent Output Value Bands metric demonstrates.
Amultitude of transactions larger than 10 BTC has been recorded on-chain recently. The selloff doesn’t appear to be slowing down. It looks like some large holders have finally lost conviction and are selling their coins as they fear more downside in the short term.
However, there are always two sides to any trade. It’s worth noting that the supply has been met with sufficient demand to hold the price above the $20K level. New wealthy investors are entering the market as they consider Bitcoin undervalued. This follows a correction of more than 60% from the $69K all-time highs.
Although this could be taken as a positive signal, the upcoming weeks should be monitored closely as supply could once again exceed the available demand. This would lead the price to break below the $20K support, which could lead to another rapid crash and capitulation.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Ep 1025: Bitcoin Can Burst to $2.1 Million Amid Largest Wealth Accumulation in History: Macro Guru! Song | Justin Verrengia | Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News - season - 1
Ep 1025: Bitcoin Can Burst to $2.出售和存储加密货币 Bitcoin (BTC) 1 Million Amid Largest Wealth Accumulation in History: Macro Guru!
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Former Goldman Sachs executive Raoul Pal says an explosion of the crypto market cap by 200x in the next decade is within the realm of possibility, with a potential Bitcoin target price of $2,100,000 per BTC. “What I do know is if I just extrapolate the network adoption effects, the number of users, and where the number of users is going and assume it gets to somewhere between four and five billion in the next 10 years or so – which would be central bank digital currencies enabling it, all ticketing, a whole bunch of stuff going that way – the market cap of the space goes from $1 trillion to $200 trillion… People don’t realize the world has never seen an accumulation of wealth like that in history. This would be the shortest period of time of the largest accumulation of wealth ever seen.” Learn more about your ad choices. Visit megaphone.fm/adchoices
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Following 14% Correction in a Week, Is There More Pain Ahead for BTC? (Bitcoin Price Analysis)
The most recent outlook for Bitcoin is not overly promising, as the price 出售和存储加密货币 Bitcoin (BTC) 出售和存储加密货币 Bitcoin (BTC) has been rejected from a key technical resistance level and is breaking below support levels. The recent rebound from the $20K area appears to have been just another mid-bear market bull trap.
Technical Analysis
The Daily Chart
The 出售和存储加密货币 Bitcoin (BTC) price has been plummeting over the last few days after getting rejected from the $24K resistance level for the third time. The 100-day moving average, currently located at $24K, has also played a role in pushing the price down.
Currently, Bitcoin is trading below the 50-day moving average after impulsively breaking it to the downside and has failed to rise back above it. The next technical support would be the significant $20K level, 出售和存储加密货币 Bitcoin (BTC) 出售和存储加密货币 Bitcoin (BTC) and in case of a bearish breakout below it, another huge drop towards the $15K area could be expected.
The 4-Hour Chart
On the 4-hour timeframe, the price has been rejected from the higher boundary of the large bearish flag for the fourth time. A direct result is breaking below the bullish trendline, which has been holding the price over recent weeks. Currently, the lower boundary of the flag is acting as a support, but considering the price action, a breakout below it seems likely. This is a bearish flag pattern that tends to get broken to the downside after 3 or more top touches.
The RSI indicator has also just recovered from the oversold state, but it is still showing values below 50, indicating that the bears are in control. As a result, a bearish breakout and continuation towards the $18K low and beyond seems like the most probable scenario in the short term.
On-chain Analysis
Bitcoin Spent Output Value Bands
In recent weeks, large amounts of coins have been changing hands, as the Spent Output Value Bands metric demonstrates.
Amultitude of transactions larger than 10 BTC has been recorded on-chain recently. The selloff doesn’t appear to be slowing down. It looks like some large holders have finally lost conviction and are selling their coins as they fear more downside in the short term.
However, there are always two sides to any trade. It’s worth noting that the supply has been met with sufficient demand to hold the price above the $20K level. New wealthy investors are entering the 出售和存储加密货币 Bitcoin (BTC) market as they consider Bitcoin undervalued. This follows a correction of more than 60% from the $69K all-time highs.
Although this could be taken as a positive signal, the upcoming weeks should be monitored closely as supply could once again exceed the available demand. This would lead the price to break below the $20K support, 出售和存储加密货币 Bitcoin (BTC) which could lead to another rapid crash and capitulation.
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PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions 出售和存储加密货币 Bitcoin (BTC) of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own 出售和存储加密货币 Bitcoin (BTC) research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Popular Crypto Analyst Warns Bitcoin (BTC) Poised To Trap Bulls, Updates Outlook on Ethereum (ETH)
A closely followed crypto strategist believes that Bitcoin (BTC) is setting up bulls to believe that the $20,000 area could be the bear market bottom.
Pseudonymous analyst Pentoshi warns his 600,100 Twitter followers that Bitcoin has touched support around $20,000 three times in span of about a month.
“Things that look safe, but aren’t… Can 出售和存储加密货币 Bitcoin (BTC) we go up? Yes. Will these almost certainly get run and or lead into a nuke. Also yes. These almost always setup as a trap for longs that build over time thinking it’s ‘titanium support'”
Source: Pentoshi/Twitter
In technical analysis, bouncing off a support level multiple times suggests that a breakdown is in sight as demand at that particular price area gets exhausted.
Pentoshi also says that retail traders likely bought Bitcoin near the top of BTC’s recent rally, indicating more downside risk as those who got in late prepare to cut their losses.
“It’s interesting to note that despite people claiming they bought the bottom, most BTC changed hands at $24,000 where spot was distributed.”
The crypto strategist also highlights that Bitcoin is now trading below the 200-week moving average, an indicator that has marked the bottom for BTC during its previous bear cycles.
“BTC weekly 200 moving average enjoyooorrsss.”
Source: Pentoshi/Twitter
At time of writing, BTC is 出售和存储加密货币 Bitcoin (BTC) swapping hands for $21,400 while the 200-week moving average is hovering above $23,000.
As for Ethereum (ETH), the crypto analyst warns that the leading smart contract platform just respected a crucial resistance level, suggesting that the downtrend is very much intact.
“The story writes itself. ETH.”
Source: Pentoshi/Twitter
At time of writing, ETH is trading at $1,642, below Pentoshi’s marked resistance at $2,000.
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