Introduction
The recent sell-off of BTC hit other cryptocurrencies harder, which led to a general downturn in the global cryptocurrency market capitalization below $1 trillion. As the crypto market showed signs of recovery previously, the bullish momentum was short-lived when the market failed to close above the $25000 level.
Binary brokers and other exchanges will be crossing their fingers to see if the $17000 level will give way to the Bears or if it will survive another Bears threat.
BTCUSD: Technical Analysis
Monthly Chart
Monthly Resistance Levels: 35000, 40000, 25000.
Monthly Support Levels: 20000, 17500, 18500.
The BTCUSD pair on the monthly chart shows that the previous month’s activities lacked bullish momentum as the Bulls could not trade higher than the 24500 level when it tried to make some degree of corrections. The month candlestick of September has made about 13% gain against the Bulls from the opening price of the market.
If the selling momentum should close below the 17000-dollar level, we may see another swing to the 13000-dollar level.
Weekly Chart
Weekly Resistance Levels: $25000, $24500
Weekly Support Levels: $20000, $17000
Last week’s trading activity in the crypto market did not favor the long position traders as the market closed below a 5% gain from its opening price as it could not break out above the resistance of the previous week’s candlestick. From the chart, we can see that the price has moved about 8% to the south as the week progresses.
The bearish trend is likely to continue as the price draws closer to the support level of the 17000-dollar mark, and a close below the zone will attract more bearish crypto brokers that will take the price lower to the 15000-dollar level.
The BTCUSD pair is approaching a psychological zone which can shift the market sentiments among investors, crypto brokers, and other crypto users because a breakout below will increase the fear sentiment in the market but a rejection of the price around the zone can bring optimism into the market among the various participants.
Daily Chart
Daily Resistance 20420K, 22000K.
Daily Support 19000K, 17000K
The BTCUSD candlestick of 26 August 2022, closed in favor of the Bears and it also engulfed about six other daily candles to show the dominance of the Bears. The bearish swing is expected to continue as the price retest the previous support levels that what broken.
At the close of the daily candlestick of 06 September 2022, the candle shows that the bearish trend is likely to continue as the candlestick engulfs the previous day’s candlesticks by closing below the 20000-dollar mark. This week’s markets movement may likely retest the lowest support of the 17592-dollar mark if the momentum continues to push the price down.
However, the support level of 17592 did create a demand zone for the Bulls previously as of 18 June 2022 when the zone rejected the seller’s offers. If the Bulls can hold the zones, we may see the price bounce off again from the support area.
Bullish Scenario:
A Bullish scenario may take place around the last low price created some weeks ago if the support level of (17590) can reject the selling price of bitcoin. The crypto brokers will need strong fundamentals that can push the price up from the zone if the bullish surge needs to turn the market in their favor.
Bearish Scenario:
The bears took over the market from the 22000 levels as Bulls cannot break out above the resistance level of 24000 when the price retested the level. The bearish swing continued as the Bear’s momentum returned as expected in the market. A breakout below the lowest low will put the bitcoin price into another panic mode as the price drops lower into the 2017 support zones.
Bitcoin BTC News Events
WHY BITCOIN ACTIVITY IS IN THE BULL MARKET RIGHT NOW?
Zack Voell, a prominent reporter and crypto researcher said that there are indications that some whales are adopting some of the crypto assets about the off-chain activity.
He is also an analyst at Braiins, a bitcoin mining Software Company, he viewed his opinion that growth tends and supply data shows that adoption of BTC is increasing across layer 2 protocols where bitcoin-backed tokens and more are on the rise. He said that the highlight is the built-on-bitcoin layer 2 protocols.
Tokenized bitcoins on other blockchains that are used as bitcoin-backed token represents bitcoins and it has shown extraordinary growth. For example, (WBTC) Ethereum-based Wrapped Bitcoin that was launched by Bitgo. The supply has been growing in the past two years and other tokenized bitcoin versions have been launched. Projects on Ethereum, Solana, Tron, and Avalanche blockchains are among the tokenized Bitcoin versions that have grown recently.
He also stated that more people are using their bitcoin somewhere else besides the bitcoin blockchain, as they can see value in their coins when it is used outside the bitcoin-native economy. He sees the point of this analysis as the case of holding bitcoin, and it’s used as a native layer for the future adoption of bitcoin.
The bitcoin market is ranging between the 20000 level and 17000 zone in the past weeks and a breakout below can mean more trouble for exchanges, crypto brokers, and investors.
Conclusion and Projection
The BTCUSD pair experienced another bearish swing when the price of bitcoin breaks out below the 17000 zone on the bitcoin chart. There is fear in the market as the Fed continues to battle the inflation rate by increasing its key rates and tight monetary policy in general.
The last line of hope for the long-position traders and crypto brokers is the 17000-dollar zone. A close below the zone will discourage investors, but a rejection of the bitcoin price will attract more crypto brokers into the market.
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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