Bitcoin market movements have deviated almost entirely from established bear markets in 2022. After the June crash, $17600 was reached by this digital asset that had not fallen below its previous cycle peak. It has taken several weeks to get the price back up above the cycle peak since then.
Bitcoin Enters Consolidation Levels
Bitcoin is consolidating at the peak 2017 levels over the past month. Although it continues to battle against the tide, not even its various accumulation trends can drag it out. The digital asset has been in decline since its $17,000 low.
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The major resistance points are now further away, which has increased the pressure on the market. Due to low prices, sell-offs have been dominating and demand from big investors has continued its decline. Support that was built up to $20,000 has been destroyed. The price has been taken over by short-term traders.
BTC consolidates 2017 peak Source: Arcane Research| Source: Arcane Research
However, it is worth noting that large price increases can be preceded often by levels of consolidation. This was evident at various times in the past. It even happened prior to the huge bull runs in 2021. It is difficult to see a breakout of this consolidation level if long-term investors don’t make any significant moves.
Best Case Scenario
There is currently no reason to believe that bitcoin will go into a new bull rally. Best case is that bitcoin has the ability to gather strong support from the bears. It’s either that or risk being dragged down to $14,000 where there is stricter support. It’s because $14,000 marks the peak level for 2019, so the chance of reaching this peak is slim.
Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
Bitcoin is seeing support at $17,000, so it should not be overlooked. This is where bitcoin found support during the June crash. It eventually saw a lifting point. It was also at this point that there was a relief rally in early 2018 during the bear market’s early days. There is still a chance that the level can be maintained.
Similar reading: Bears refusing to be moved as Bitcoin fights for $20,000| Bears Refuse To Budge As Bitcoin Struggles To Reclaim $20,000
Still, the price of bitcoin could rise. Bitcoin had managed to surpass the $22,000 resistance last week. However, it was only briefly. Breaking above that could lead to bitcoin trying to rally toward $28,000. This is an extremely strong resistance.
Although $28,000 may be a good short-term goal for investors, you should keep in mind the significant resistance that exists at $25,000. This support level, which was used to help the price drop below $30,000 previously, is now somewhat hindering an uptrend.
Featured Image from Marca. Charts from Arcane Research and TradingView.com.
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