At the weekly candle close, the situation for Bitcoin continues to be bearish due to a severe lack of market demand and macro events.
The price recently plunged to a key support level of $18,000. Will the bears finally break above the key level, or will a bullish correction enter?
Technical Analysis
Author Shayan
Daily Chart
After the BTC price fell below the 50-day SMA and retested, it fell sharply again by about 8% within 24 hours, confirming that the support turned into resistance.
The aforementioned $18,000 level has supported prices considerably over the past few months. Considering the increase in bearish momentum, a breakdown is very likely.
An important point to note is that the 100-day and 50-day moving averages are about to form a bearish crossover. Such a crossover is a lagging indicator; however, this would not contribute to an already bearish sentiment.
4-hour chart
On the 4-hours chart, the price recently broke out of a rising wedge pattern (textbook bearish). However, BTC is expected to form a pullback and retest the lower border of the wedge, around $21,000, to confirm the breakdown.
A bullish divergence between the current price and the RSI indicator shows the concept. Given the nature of the divergence and formation pullback, the price is likely to experience a short-term correction towards the $21,000 level before continuing a bearish move towards the aforementioned $18,000 support.
On-Chain Analysis: Bitcoin Funding Rate
By Edris
The perpetual futures market plays an important role in determining Bitcoin’s short-term price action. Therefore, it may be helpful to assess futures market sentiment. The BTC funding rate is one of the most popular metrics to achieve this.
Funding rates indicate whether most futures traders are bullish or bearish about the future of Bitcoin price. Negative values ​​indicate bearish market sentiment, conversely, positive values ​​indicate bullish sentiment.
Currently, funding rates are turning negative again as the price declines from the $24,000 resistance. It is worth pointing out that the futures market expects Bitcoin 
to break below this level and possibly make new lows. The resulting selling pressure could keep prices so, however, when funding rates drop, the market tends to reverse very high or very low.
This indicator should be closely monitored in the near term as extreme negative values ​​increase the likelihood of a bear squeeze and could indicate a bottom is approaching, similar to last year’s $30K bottom.
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