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 industry has passed through a tough period as the bearish trend dip beyond the expectations of Australian binary brokers, retail traders, and investors. The bear market has retraced about 100% of its previous Bullish run it did after breaking out above the ATH of 2017. This month, the trend has been neutral because the market level at the price has found itself.
The crypto industry has seen a severe plunge in Altcoins price across the board, while some have lost their market value following the prolonged bear market. However, some analysts believe that the bullish cycle is around the corner as soon as the support is established.
BTCUSD: Technical Analysis
Monthly Chart
Monthly Resistance Levels: $30000, $48222.96
Monthly Support Levels: $15000, $17000, $190000.
June’s candlestick moved about 45% from the opening price and dropped to the support level of 17000 as the month’s candle closed in favor of the sellers. The BTCUSD market is still bearish as the dominance of sellers can be seen in the crypto market.
The selling pressure may continue to take the price down if the price cannot establish a support zone around $20,000 and $19,000 level. The July activity is relatively slow on the monthly chart and the market will need a new drive for the price to go up.
Weekly Chart
Weekly Resistance Levels: $32920, $23500.
Weekly Support Levels: $19600, $15000.
Having seen that the price of bitcoin fell sharply from the $32920 zone to the support zone of 11 December 2017, the dominance of the sellers is evident in the market. Crypto brokers are uncertain about the price of BTC and have seen it consolidating for weeks because of the zone.
The market bias is not certain or clarified because the Australian cryptocurrency industry is volatile and the market has been facing a bearish scenario for the past weeks.
Daily Chart
Daily Resistance $25222.00, $31411.50.
Daily Support $17567.00
Looking at the daily time frame the chart shows that the price remains in a consolidation state as the BTCUSD pair has not moved out of the present condition. The bearish trend started its move around April 2022 ($48234) as the bearish crypto brokers took control of the market from the resistance zone.
Technically, crypto brokers and traders expect the $19600 zone where the price of BTCUSD is currently ranging to serve as support because you expect the previous high of 2017 which is a sentimental level for crypto traders in the market to push the price up from the zones.
However, if the zone should fail to reject the bears and closes lower, the value of bitcoin will drop to the $15000 zone because the bearish trend is still valuable.
Bullish Scenario:
The daily time frame is struggling with the $19000 level as the buying scenario is losing its possible because of the dominance of the sellers in the crypto market. If the level can reject the bear’s pressure and we see a bullish buying pattern around the zone, the pair will likely go up.
Bearish Scenario:
Recent daily candles show bears dominating the Bitcoin market as the seller is testing the support level of $19000 for the bearish scenario to continue. The market is on a downward trend from the daily time frame and a breakout will expose the next level of support.
eToro Disclaimer: 68% of retail investor accounts lose money when trading CFDs with this provider
BTCUSD News Events
GLASSNODE’S THOUGHTS ON BITCOIN
From Glassnode analysis, the month of June has recorded the worst performance since the Bears have dominated the market structure and the market kept making lower highs and lower lows. The concern is that the market did form many bottom formations patterns, but Bitcoin has not established resiliency that can overturn the bearish trend.
The redistribution of wealth among stakeholders has been observed by Glassnode when the distribution of wealth moved from the weaker investors, and traders to stronger hands (crypto brokers).
Due to the level at which the price of bitcoin has fallen, the long position traders have come under stress as a report from the blockchain analysts firm shows that the long position traders(holders) are above 34% while short-term holders plunged to 4% of supply. The LTHs are the ones facing the brunt of the massive loss in the bearish market, and it brings about fresh redistributions of new coins that will undergo the process of maturation with higher conviction holders.
As the bear market is about to come to an end, the miners as always prove to be key players in the downtrend as based on the cycles of their revenue and income. However, BTC miners are going through income stress with earnings of 49% as much as the 12-month average. Glassnode also observed a slowing of miners recent spending, with a distribution from stored reserves at the rate of 1.35K BTC monthly.
Conclusion and Projection
The BTCUSD pair is consolidating at the moment and the expectation of crypto brokers is for the market to establish solid support which can reverse the bearish trend. However, the sentiment in the industry has not shown bullish enthusiasm as investors and other market participants are uncertain about the next move in bitcoin price.
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
- BTCUSD: Weekly Technical Analysis - September 30, 2022
- BTCUSD: Bulls to Dominate the Zone for the Price to Rise is Expected - September 16, 2022
- BTCUSD: Price of Bitcoin Bounce Expected - September 2, 2022
