Bitcoin appears to be on the cusp of testing its previous support levels. It has experienced a constant downturn that brought it to an all-time low of about $17,000 for the last several years.
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Bitcoin is trying to recover previously lost territory but selling pressure continues driven both by the negative news surrounding the crypto sector and shifts in U.S. Federal Reserve’s monetary policy (Fed), At the time of writing, BTC’s price trades at $20,000 with a 10% loss in the past week.
Analyst Michaël van de Poppe believes BTC’s Price remains in a good position after it was rejected at $21,000. The cryptocurrency could have more potential for bullish continuation if it holds above $20,000 Twitter, an analyst said:
Holding and sweeping the lows. If $20k is held, you should be able to sweep past the high of $21K. Then you can move on to a higher high such as $23K or possibly $24K. Longs still open.
Material Indicators (MI), which provides data, shows some support for Bitcoin under $20,000. According to Material Indicators, some support for Bitcoin is below $20,000.
However, Bitcoin has received orders of $19,000 and there have been bids totalling $30,000,000. If there is any downside, the area can be used as support.
The remaining $40 million worth of bids between $17800 and $18,000 could still be placed if these levels are not met. This extra support may provide some additional protection. Below those levels the order books look thin
Over $20,000,000 in orders for $21,000 are placed above current prices. This level will continue to be a major resistance area and an obstacle for BTC’s price as it consolidates around the area.
Material Indicators analyst sharedThe following is a list of obstacles that prevent BTC from future appreciation.
It is for this reason that we are waiting on confirmations. Despite yesterday’s sentiment gains and #TradFi gains, the rally lost momentum just before reaching the 200 WMA. Fire Charts now shows that there is a $60M of ask liquidity between this and the 200-WMA range.
Is Bitcoin on the Verge of a Price Bottom?
Analysts from MI stressed that BTC’s bottom date is not known with any certainty. The bearish trend is not certain, but there are clues investors can use to help them identify it.
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For example, BTC’s price usually bottoms and then goes into a long period of consolidation. Twitter statement by the analyst. He did not rule out another drop.
the market is overdue for a rally, and the fact that moves to or below the 200 WMA have historically led to Bull Markets, we can’t validate that until price reclaims the key moving averages, starting with the 200 Weekly MA.