Bitcoin has yet to make a decisive move in either direction as the major cryptocurrency continues to struggle with the $18,000 support level. A bearish breakout below this position could be disastrous.
The daily chart
Bitcoin price overlaps with crucial support in the daily time frame as it oscillates in a very tight range between the significant downtrend line and the $18,000 support level. With minimal room for movement between these levels, a breakout to either side is expected over the next few days or even hours.
The 50-day moving average near the $20,000 mark currently provides additional dynamic resistance and continues to prevent the price from growing, keeping it below this level for now.
Given the overall bearish market structure and the confluence of resistance levels around $20,000, a bearish breakout below $18,000 appears to be a more plausible scenario. This breakdown could initiate another pullback towards the $15,000 area and beyond.
Against this scenario, for the bearish outlook to fail, the price must break above the bearish trend line as well as the 50-day and 100-day moving average lines.
This bullish bounce would pave the way for a rally towards the $24,000 resistance level in the near term.
The 4 hour chart
In the 4-hour period, the price continues to fluctuate between the $20,000 and $18,000 levels as the market appears to be calm before the storm. A break above or below the aforementioned levels could trigger a massive move in this timeframe and shape the mid-term price action of the crypto asset.
The RSI is also currently sitting around 50% as momentum remains neutral for now. This indicates that the buying and selling pressure remains in a fragile balance.
However, the oscillator has recently broken below the 50% level, pointing to a possible bearish change in momentum and further increasing the likelihood of a bearish continuation.
Miners joined the capitulation phase and have been distributing small amounts of their bitcoins after a significant price decline towards the $18,000 level. However, the hashrate has experienced a mild rebound and recently surged to a new all-time high.
Given that the price of Bitcoin is down approximately 74% from its all-time high set in November 2021, and mining may not be profitable for many miners and mining pools, this increase in the hash rate could be a indicator of your belief in Bitcoin while providing the security of the asset.
The capitulation of the miners has historically marked the end of the bear market and it seems that it is coming to an end. Therefore, there is a high probability that Bitcoin is about to find its long-term bottom at these price levels.
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