In light of recent negative market actions, traders and investors alike have felt fear. Bitcoin, which is the most popular cryptocurrency has seen the worst selling since June and July’s crisis.
Bitcoin’s price has dropped by almost 8%, with a peak of $22,400 in September and a minimum of $18,790 in today. Bitcoin’s price dropped 13.31 percent.
These negative economic trends in America, along with recent price swings, could also be responsible for this sell-off. The latest sell-off is still going strong as of the time of writing.
Price information from the last few days places Bitcoin between $19,344 and $18,346. These figures are not suitable for financial market participants.
Bitcoin Needs To Crawl Back Up
Bitcoin’s attempt at a comeback resulted in the formation of a double triangle, which is harmonically related to the XABCD pattern.
The pattern could indicate a trend in the opposite direction, where buyers may be able to get in for a discounted price and sellers make a profit. But this is not what happened.
Bitcoin could retest $20,000 before retreating to $18,000.
BTC sells for a considerable discount at the current 78.60 fib level. This price level is far from $20,000 which could hinder any future rebound.
With the above-mentioned price, investor confidence will only increase.
Only bulls can buy out the continuing decline of the bearish trend and make a turnaround.
Bitcoin’s price may be able to retest the $20,500 resistance level if the aforementioned hypothetical event occurs. This resistance can be found at the 61.80 Fib levels.
However, Bitcoin’s correlation with the broader financial landscape is not advantageous. Bitcoin’s close correlation with the S&P 500 and NASDAQ indexes makes it difficult to restore upward momentum.
BTC requires all energy that it can generate to normalize
Bitcoin’s rebound is in peril as the larger financial sector experiences a steep decline. It may even not reach the $20,500 resistance.
The renowned cryptoanalyst @woonomics says that Bitcoin is not at rock bottom yet. He analyzed the performance of Bitcoin in the past and current, finding that 52 percent are still underwater.
Bitcoin’s previous bottoms were 61 percent, 67 percent, and 57 percent. He indicated that Bitcoin’s previous bottoms were 61 percent, 67 percent and 57 percent.
To help Bitcoin emerge from its current predicament the financial system must recover from the collapse.
The Stoch RSI values have converging as of the writing. This may give the price a slight boost.
However, given the market’s current downward trend, it is difficult to expect a recovery.
Source: TradingView.com| Source: TradingView.com Pixabay Featured Image, Chart: TradingView.com
The analysis is a personal opinion of the author and should not be considered investment advice.