Bitcoin in a Bear Market? Prices Continue to Fall After Rebounding From $17.5K
After the 70% drop, Bitcoin’s price has failed to show any sign of strength, like in its previous rallies. The price is currently falling slowly after rebounding from $17.5K a few weeks earlier. Mining by Edris, who is technical analyst at The Time[...]
Bitcoin's price still has not shown any signs of strength, even after the 70% crash. The price is currently on a slow decline after a small rebound from $17.5K couple of weeks ago.
Analysis of price and volume data to predict future market trends
Edris tweeted
The Daily Chart,
If the price breaks below the $17.5K level, it will be considered a key resistance. A further drop towards the $15K range and lower levels could therefore be expected in the mid-term. However, a fake breakout and quick reversal is also possible, which could initiate a rally in the short term. The 50-day moving average at around $26K and static resistance levels of $24K and $30K would be critical obstacles even in this case. The probability of a bullish reversal is very low before breaking above the $30K level
The 4-Hour chart is a tool that traders use to monitor the price of a security over a given period of time.
On the 4-hour chart, the price is consolidating in the $17K-$20K range, forming a triangle pattern. This could be a reversal or continuation pattern.
A bullish breakout’s targets would be the $24K zone and then the previous bearish flag's area, where it formed earlier.
If the price fell to $17.5K following a bearish breakdown, the RSI indicator would show values below 50%, indicating that bears are in control. This indicates that there is a higher probability of a bearish breakout occurring.
On-chain Analysis
Edris, who writes on Twitter
Long-term Bitcoin holders have the option of SOPR.
The massive losses incurred by investors in the last few months following Bitcoin's ruthless downtrend have caused even long-term holders to realize losses. This is typical behavior during the last phase of a bear market, when even long-term holders begin panic selling or "capitulating."
These holders usually have large amounts of Bitcoin because they’ve probably bought their coins at lower prices and have held them for a long time. So, they would release a significant supply into the market, which would trigger the bear market's last crash.
When the smart money accumulates these cheap coins, the bottom will form. The long-term holders' SOPR metric shows how much they are profiting or losing daily. This metric is currently trending below 1, which indicates that the long-term holders are experiencing losses, and it suggests that there will be more pain and decline in the short term and a potential bottom in the near future.
