The BTCUSD pair on the monthly chart shows that the crypto traders who are shorting the BTC are engulfing the previous month
Introduction
The crypto market has seen more counties embracing the number one cryptocurrency as a way out of the challenges that fiat money faces due to high inflation, high unemployment, stagnant aggregate demand, and other reasons has made crypto brokers, investors, and other nations look towards Bitcoin adoption. The Central African Republic is the first country in Africa to legalize Bitcoin as a legal tender following the steps of El Salvador.
BTCUSD: Technical Analysis
Monthly Chart
Monthly Resistance Levels: 69000, 48300.
Monthly Support Levels: 32950, 28600, 34000, 40000.
As the month is in its last trading week, we have seen that the price of bitcoin drops again from the high of 48300. The BTCUSD pair is controlled by the Bears as the bears try to engulf the previous month’s candle.
If the engulfing should happen at the end of the month, will are we to see a breakout above the 48300 will favor the Bulls but a close below the 34000 level will strengthen the Bears.
Weekly Chart
Weekly Resistance Levels: 52098, 48560.
Weekly Support Levels: 37370, 28600, 35000.
The bitcoin price has been sitting in the support zone of 24 January 2022 and 14 February 2022 for a while. If the support zone can reject the seller’s attempt it will be a triple bottom chart pattern if the long crypto brokers can close above the neckline of the 48560 zone, the price will likely rise to test the ATH or it will establish a new ATH.
The weekly chart still has a bearish swing which indicates that the downtrend can still take place if the price of bitcoin should close below the supports zones of 24 January 2022.
The previous week’s candle of 18 April 2022 closed in a Doji and it shows that the crypto brokers have not decided on the trading direction they want to go. The sentiment in the crypto market is in an indecision state.
Daily Chart
Daily Resistance 48234, 42978, 50500,
Daily Support 40000, 35000, 37710.
The BTCUSD pair started the trading week in a quiet stage as the price of bitcoin in the crypto market closed below the previous week’s low testing the support areas of 37710. If the bears are to take the price lower, we expect the swing to close lower than the recent zones.
The price is approaching the buyers’ zones where the buyers have taken the price up previously, if crypto brokers who intend to go long see any bullish patterns, the surge will go higher if the price can close above the 42978 zone for the bulls to retest the 48234 high.
Bullish Scenario:
The BTCUSD pair is not too certain of the bullish scenario because the previous week closed in a Doji and the new trading week may not see much activity as the crypto brokers wait for a breakout above the resistance zone of 42978 to have control of the market.
Bearish Scenario:
The Bearish scenario will continue if the price of bitcoin can close below the 35000 level on the daily chart. The swing remains bearish and the market is in a consolidation state. A breakout below the support zone will give the sellers an advantage over the buyers.
Bitcoin BTC News Events
Mining of Bitcoin HITS Records high.
The number one crypto asset had mining difficulties but it has reached a lifetime high of 29.78 trillion. The world’s largest cryptocurrency, bitcoin has passed through a tough time and different onslaught of sellers as it gently rose to $39000 despite the choppy nature of the market, and its volatility.
A report from BTC.com shows that the mining difficulty rose about 30% since 2021 when the figure was around 23.58 trillion and bitcoin mining difficulty rose above 5% as of 27th April 2022. Based on the report for 2022, the metric showed an increase of about 23% as BTC underwent three positive readjustments and also had two negative ones. By May 10, 2022, the net difficulty readjustment will take place.
The Hash rate of bitcoin fluctuated significantly as it follows its price actions. The bitcoin’s network hash rate notched an all-time high of 258 EHYs before dropping to 222.68 EH/s.
Conclusion and Projection
The BTCUSD pair on the monthly chart shows that the crypto traders who are shorting the BTC are engulfing the previous month. if the momentum increases can the price of Bitcoin drop lower in the coming months?
However, the reaction of the price will be determined by the strong support zone the price is sitting on as crypto brokers wait for a major break out above or below the key zones
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- BTCUSD: Weekly Technical Analysis - September 30, 2022
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