Sunday, February 25, 2024
HomeUncategorizedBitcoin Faces Key Support: Break Or Rally To $22,000? (BTC price...

Bitcoin Faces Key Support: Break Or Rally To $22,000? (BTC price analysis)

The price of Bitcoin is in a mid-term consolidation phase. The price has fallen and will now face an important support level at $19,000, which is the most critical support level for the bulls to hold in the next short-term.

Technical Analysis

By Shayan

Daily Chart

After about 10%, the BTC price entered a consolidation phase, and the price trend fluctuated. The $19,000 support level has greatly supported the price of Bitcoin over the past few months. Therefore, if this level is broken, a sharp decline is expected.

However, the 50-day and 100-day moving averages are nearing a bearish crossover, which could intensify the bearishness

4-hour chart

In the short term, there is a clear bullishness between the price and the RSI indicator The divergence suggests that Bitcoin could rally in the coming days. The price must first break above the downtrend line (marked in yellow).

Considering the strength of the aforementioned divergence and the $19,000 support, there is a chance of a rebound in the near term. A correction towards the $22,000 level is likely before the next sharp drop to attack the $18,000 threshold again.

On-chain analysis

By Edris

Bitcoin Exchange Whale Ratio

Bitcoin Whale vs BTC Price Action have a significant impact. This is because whales hold large amounts of capital that they can use to move and manipulate markets. The Exchange Whale Ratio indicator shows the ratio of whale deposits to total deposits in a day.

Based on the chart, it is clear that whales tend to be in the first phase of a bear market, as there are willing and impatient bargain hunters who take Bitcoin out of their hands before finally capitulating.

Following the aforementioned capitulation, the same investor whales who bought their tokens are under heavy psychological and financial stress at higher prices. From this, they end up selling the cheap coins back to the whales. This cycle is shown in the diagram below and marked with red and green arrows.

The whale ratio indicator is still rising, indicating that whales are distributing at current prices, signaling another potential decline. Overall, the market still appears to be far from bottoming out and an eventual capitulation event may be imminent.

Special Offer (Sponsored)

Binance Free $100 (exclusive): Use this link to sign up on Binance Futures No. 1 Sign up for a month and get $100 free and 10% off fees (Terms).

PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 in deposits.

Disclaimer: Information seen in CryptoPotato are those cited writers. It does not represent an opinion of CryptoPotato as to whether to buy, sell or hold any investment. It is recommended that you do your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for details.

Cryptocurrency charts by TradingView.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LAST NEWS

Featured NEWS