Bitcoin Falls To Decisive Line At $21,500, What Levels Should BTC Hold?
August 19 2022 - 10:34AM
NEWSBTC
Bitcoin hangs by a thread as an increase in selling pressures sends
major cryptocurrencies back to critical support levels. The number
one crypto could return to the bottom of its current range If bulls
are unable to step in and push back on this fresh bearish assault.
Related Reading: TA- Price Of Ethereum Struggles To Hold $1,700,
Are Bears Taking Over? At the time of writing, Bitcoin’s (BTC)
price trades at $21,400 with a 9% loss and an 11% loss in the last
24 hours and 7 days, respectively. Ethereum continues to outperform
BTC’s price as it has been able to hold on to part of the gains
from last week, but bulls must draw the line at the resistance
turned support on $1,700. According to senior market analyst for
Cubic Analytics Caleb Franzen, Bitcoin’s bearish momentum might be
about to increase. The cryptocurrency is flashing a potential
selling signal according to the 4-week Williams%R oscillator, an
indicator used to measure an asset’s momentum. The Williams%R
indicates that Bitcoin has gone from overbought levels to oversold,
according to Franzen. As seen in the chart below, whenever this
indicator signals oversold, the price of Bitcoin has trended to the
downside. This indicator has successfully predicted June’s 2021
major crypto crash when the price of Bitcoin dropped from a yearly
high north of $64,000, and the most recent downside trend when BTC
finally lost $40,000 and reached its lowest price in two years at
$17,600. The analyst said: When the 1-month W%R plummets from
“overbought” to “oversold”, this has been a precursor for a larger
decline and capitulation. Could this time be different? Absolutely.
But bear market momentum will be hard to defeat. Franzen believes
$21,500 will operate as an important level for a potential support
re-test. If BTC’s price fails to retain these levels, the
cryptocurrency might drop to $20,500 and $19,000 before seeing a
rebound. What’s Impacting The Price Of Bitcoin? The crypto market
has been experiencing relentless selling pressure due to
macro-economic factors: the U.S. Federal Reserve (Fed) hiking
interest rates, and high inflation which has driven off risk
appetite in global markets. These factors were mitigated by recent
events. However, economist Alex Krüger believes the attention has
moved from the U.S. to Europe. The old continent faces an energy
crisis, the war between Russia and Ukraine, and potential dangers
for economic growth across its major economies. Related Reading:
Ethereum (ETH) Dips Consecutively And Falls Below $1,800 In the
current macro conditions, Krüger believes only Ethereum might have
a chance to continue outperforming due to the upcoming “Merge” on
mainnet, the transition from Proof-of-Work to Proof-of-Stake.
Krüger said: Two things happened overnight: equity risk off driven
by bad German data, crypto hit air pocket after consolidating at
the lows. Seems markets moving from focusing on the Fed to focusing
on Europe. ETH is the best performing crypto asset in this dump,
not about positioning
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