The BTCUSD pair on the monthly chart shows that the crypto traders who are shorting the BTC are engulfing the previous month
Introduction
The BTCUSD market has seen a strong bearish trend on the BTC trading platform as crypto brokers hold on to their positions while more users of cryptocurrency are liquidating their positions in the market. A close below the psychological zone has led to a 20% crash of BTC.
However, analysts on popular crypto options brokers speculate on likely support shy of the 20K USD round-number support.
BTCUSD: Technical Analysis
Monthly Chart
Monthly Resistance Levels: 69000, 25500.
Monthly Support Levels: 20000, 19500, 14500.
The BTCUSD pair saw bulls breaking out of the resistance level of 01 December 2017 (19500) which saw the price hit ATH of 69000 before the trend reversed. However, the bitcoin price is retesting the previous resistance zone turned support after two years of the breakout. If the support zone fails to hold, we might see the price drop to the 14500 level.
The crypto market has proved to us that the 25500 level is not an established support level the price of bitcoin broke out below the zone to take the BTCUSD pair to the 20000 zone. If the zone is likely to hold, we may start seeing bullish momentum buildups around those zones for the Buyers to take the price up.
Weekly Chart
Weekly Resistance Levels: 40000, 28500.
Weekly Support Levels: 20003, 14000.
Last week candle closed below the psychological zone of 28500 on 21 June 2021. The chart shows that crypto brokers are bearish of the BTCUSD pair and that led to the sharp fall in the price of bitcoin as the trading activities resumed this week. The cryptocurrency market witnessed many traders liquidate their position as the trading activities resumes and this led to the drop of the market cap below $1 trillion for the first time over some months.
Daily Chart
Daily Resistance 25550, 32290.
Daily Support 20000.
The bearish bitcoin robots overturned the long position traders on 08 June 2022, from the resistance level of 32000 when they dominated the bitcoin market and broke the support zone of 25550. The bearish swing has opened the door for a continuation of a downtrend on the BTCUSD chart.
Now that the 20000-support level is exposed, the level will be tested in a few days, if the bearish momentum is strong the price of bitcoin may dip lower into the 2000 support level. Fear is seen within the retail crypto brokers as they close up their position in the market while the whales and other users of bitcoin kept buying the dip as they project that the price of bitcoin will still rise above the ATH of 69000 mark.
Bullish Scenario:
The 2000-dollar mark may likely be the zone where buyers can establish a bullish scenario on the daily chart if the zone can reject the sellers’ advancements for a bullish surge. However, the bullish scenario is not certain because of the Bear’s dominance in the crypto market.
Bearish Scenario:
Crypto brokers shorting the pair are still holding on to their position as some analyst thinks that the price of bitcoin will drop lower below the 20000 level after seeing the price close below the psychological zone of 25500.
Bitcoin BTC News Events
About 1100 Employees are Likely to be Fired According to CoinBase Management
In the USA, Coinbase is one of the largest cryptocurrency exchanges plans to lay off about 1100 staff as part of its plans for restructuring as the share of the coin base has dropped by 7% and it has reached a record low of $48. The company has about 5000 workforces and if the management should fire about 1100 workers, the workforce will reduce by 18%. Some companies like BlockFi, and Gemini have laid off a larger chunk of their employees before Coinbase made its announcement.
The cryptocurrency industry is facing a brutal bearish market and the reason why CEO Brian Armstrong fears that the business has to adjust to the changes in the US economy as the recession lingers which will trigger long-lasting crypto winter. During the Bull market, the company hired a lot of staff and for the financial position of the company to remain strong, it has to make the most difficult decision on staff reduction and it is the most prudent thing to do in this situation according to the chief operating officer Emilie Choi.
Conclusion and Projection
The BTCUSD price broke out below the psychological zone on the weekly chart shifting the focus from the long position to another round of sell-off amid the major banks increasing their interest rate as a means to curb easy money policies which have boosted the speculative assets. The total dominance of the Bears has led to the crash of bitcoin prices with the liquidation of billions in value.
Time will tell if the bitcoin price will establish support around the 20000 marks as the zone was previously a resistance level that has turned into a support level.
This article will not be giving advice for investment. It is strictly for educational purposes. Please consult your financial advisor when trading on leverage instruments, as we will not be liable for any losses incurred. Your capital may be at risk
He has over 7 years of experience in crypto trading.
noahjones@crypto.auz.net
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