The news that inflation in the United States is still worse than expected has caused a major crash in bitcoin (BTC). A rapid recovery seemed to follow and bitcoin was able to climb again towards USD 20,000. There the bears successfully protect the fortress. BTC was strongly rejected.
Bitcoin Price Stays Below $20,000
Looking at the current bitcoin price chart, it can be seen that the current bitcoin price is trading at $19,143 on crypto exchange Coinbase. The BTC price in euros is on the Dutch trading platform Bitvavo at €19,705. In short, the king of crypto has not been able to continue its recovery above $20,000.
As mentioned, bitcoin suddenly fell rapidly this week after the inflation news came out. A low of $18,131 was reached from where the bulls could hit back. This caused an increase of no less than 10% in 12 hours. But as expected, the bulls encountered a strong resistance near $20,000.
This psychological resistance could not be broken. Bitcoin was rejected and as a result fell back to its current level. The strong rejection does not bode well for BTC. A further descent back to the lows of earlier this year is becoming increasingly likely.
A little hope for BTC?
We find those lows at $17,500. BTC landed here in June this year after a massive descent from the $50,000 area. The lows are therefore a crucial level to keep.
Many investors hope that we can form a bottom in this price zone. Earlier in the bitcoin news it was read that Glassnode based on on chain data can indeed form a bottom here. However, this is based on previous bear markets and then of course the macro situation was very different.
The well-known analyst Dave the Wave shared something extra this week hopium. He established that the moving average convergence divergence (MACD) is crossed upwards. “Recent local downtrend is now similar to the previous run-up,” the analyst said. He adds that a similar development on the monthly chart would suggest a bottom:
“A monthly close with a strengthening/contracting histogram will be a clear indication [of bevestiging] be of a bottom.”
Weekly MACD crossed/printed. Recent local down-trend now equal to the previous run-up.
A monthly close with a strengthening/ contracting histogram will go some way towards significantly suggesting [if not confirming] a bottom. pic.twitter.com/jKLevu1bQf
— dave the wave🌊🐫 (@davthewave) October 10, 2022
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