The BTCUSD pair on the monthly chart shows that the crypto traders who are shorting the BTC are engulfing the previous month
Are crypto options brokers going to see a reversal of the trend from the support zone of $18K as the price is consolidating? A close above the $22000 level may turn the trend in favor of the buyers as many analysts and traders hope for the end of the bear market for the asset class to attract more investors. Let’s dive into the chart and other notable events in the BTC market.
BTCUSD: Technical Analysis
Monthly Support Levels: 10000, 17200.
How long will the bear scenario last in the BTCUSD cryptocurrency market? Bitcoin robots and cryptocurrency investors will be pondering the market condition as they hope for the price on the chart to find new support that will push the price up. The high of 01 January 2018 (17200) may likely be the zone the market will find its support if the level is not breached.
Weekly Resistance Levels: 32900, 28500.
Weekly Support Levels: 20003, 17700.
The bitcoin market did about 85% bearish run from the resistance level of 32900 down to the 17700-dollar level in the last 3 weeks of trading. After the price of the BTCUSD pair broke out below the 25000 level, the retail crypto brokers and short-term investors liquidated their position as fear drove them out of the market.
As the trading week continues, we may see that the buyers will want to take the price up to retest the previous support that was broken. If it is a false breakout, the price of bitcoin will pull up above the level.
Daily Resistance 25551, 32001.
Daily Support 17930, 19000.
After days of a bearish run, the daily candlesticks formed a tweezer bottom candlestick pattern on the 18th and 19th June 2022 daily candles, respectively. If the support level can hold, crypto brokers we likely get an opportunity to go bullish to retest the previous support level that is overturned into resistance around the 25500-dollar mark.
However, the price of bitcoin is below the 50 moving average line which is still a signal that the trend of bitcoin is still bearish on the daily time frame. The BTCUSD pair may likely be entering a correction phase as the price value increases during the trading week.
The daily chart is showing some reversal pattern which might likely become a bullish run on the smaller timeframe as the bullish reversal pattern can be seen on the chart. If the bullish momentum increases, the price will rise to the resistance zone of 25500.
Over two weeks the bearish Crypto broker traders have pushed the price down to the 17900 level before it started pushing for an upward move, the bears may wait for the price to hit the 25500 level before another down trend is triggered.
Bitcoin BTC News Events
EL SALVADOR ASSURED INVESTORS THAT THEIR BITCOIN INVESTMENT IS SAFE.
The president of El Salvador has encouraged investors that the bitcoin and crypto investment is safe despite the bearish state of the market. Nayib Bukele believes the BTC asset is the largest cryptocurrency in the industry and it is safe amid the bear market. He said that the price of bitcoin will increase in value again after the bearish market is over.
When the El Salvador authorities legalized BTC as a legal tender, they purchased above 2000 bitcoin last year before the selling pressure took over 50% of their bitcoin investment worth about $50 million.
From his Twitter account, he told investors to stop looking at the graph but they should have patience because the value will still grow. However, some analysts and investors shared their concerns about the fiscal health of the economy as the country has a large deposit of bitcoin in the balance shit.
Finance Minister Alejandro Zelaya reassures the public that the financial risk to the economy is minimal and he smiles that El Salvador is ok and he is still bullish on optimism. Despite the price of bitcoin falling to a level it has not seen since 2020, some people like Skybridge Capital, and Michael Saylor are also optimistic about the bullish rally on bitcoin after the bearish market.
However, some other analysts are not optimistic about the cryptocurrency market because they feared that the price may likely drop lower below the $19K level. Analyst like Jim Cramer (Mad Money host) thinks that the bitcoin price will drop to $12K. Jeffery Gundlach (Doubleline Capital) thinks that the $10K level might be the level bitcoin will bottom out while Robert Kiyosaki and Scott Minerd think of the $9K and $8K level respectively.
Conclusion and Projection
The tweezer bottom seen on BTCUSD chart can likely take the price of the asset up during this trading week if it has bullish momentum in the crypto market. Looking for an opportunity to go long is not advisable because of the predominant downtrend, Crypto brokers are advised to wait for a reversal confirmation of the trend before placing the order.
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
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