Bitcoin price recorded a huge bearish close for the week and currently testing one of the major support levels. The bears appear to be extremely strong than the bulls, the next leg down may result in yet another massive drop below the yearly highs at $17,622. As these support zones have not been tested for nearly 3 months, the BTC price is feared to break these levels easily as it appears to be porous.
The recent price crash is holding up the arguments presented by some of the market analysts who believed Bitcoin could crash down to $15000 in 2022. Now when the prices have deflated finely, the possibility of breaching through the lower support emerges. However, the bearish trend may not be in a month or two as the descending consolidation is expected to prevail for a long.
In the above chart, the BTC price trend currently appears to have mirrored the 2013 to 2016 rally. similar to the present trend, the BTC price rose from the bottom to reach the top and later maintained a descending trend for nearly a year to reach the bottom zone. Here, the asset remains almost stagnant for nearly 6 to 8 months and begins with the next bull cycle.
Hence, a similar upswing may be expected by March 2023 and till then the price may remain consolidated within $18,000 to $25,000. However, if in case the FED rates hamper the rally as they are believed to rise another 0.75 bps in the coming days, then one expect a bloodbath in the crypto market. Therefore, the possibility of Bitcoin(BTC) price forming new bottoms around $15,000 may be validated.
Was this writing helpful?