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Bitcoin Trading Flat but is a Drop Below $18K Imminent?

Bitcoin Trading Flat but is a Drop Below $18K Imminent?

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Bitcoin continues to strengthen around the $19,000 support level as bulls try to prevent a deeper collapse. If it fails, this can prolong an ongoing bear market and put even more pressure on participants.

Technical analysis

Factor: Edris

Daily chart

On the daily time frame, the price has retested the $18,000 support level after rejecting a major descending trend line. The 50-day and 100-day moving averages have also rejected the cryptocurrency.

If BTC bounces off the current support area, the aforementioned moving averages and descending trendline would be significant dynamic resistance levels before the $24,000 area, which is a significant static resistance point.

The price should break first of all, so that the continuous negative trend can be reversed. On the other hand, if the $18,000 level breaks down, a quick fall towards $15,000 and beyond is possible.

Source: TradingView

4 hour chart

The price has been hovering tightly between $18,000 and $20,000 in recent days, preparing for the next decisive move.

A double bottom pattern has recently formed at the $18,000 level, which could push the price towards $20,000 again. In the case of an upside move, both $22,500 and $24,000 would be key resistance levels in this time frame.

The RSI indicator is also in balance, as recently, it has been hovering around 50. The bulls and bears are currently struggling to gain control, and the market could break either way.

However, given the higher time frame downtrend, a break below $18,000 remains the most likely scenario.

2_btc
Source: TradingView

Onchain analysis

Factor: Shayan

Markets generally tend to bottom out when players experience significant losses, known as “surrenders”. Since long-term investors control most of the supply, the Bitcoin market accentuates their losses. A multi-year base cannot be realized without a long-term surrender phase of the holders.

The long-term holder SOPR 30-day exponential moving average and BTC price are shown in the chart below. It is clear that long-term holders surrendered for a long time during previous bear markets.

The indicator has fallen below one, a sign that long-term investors are under pressure to distribute. This has often initiated the final stage of a bear market.

However, it should be understood that this stage may require several months of volatility followed by numerous significant changes.

3_btc
Source: CryptoQuant
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Disclaimer: The information found on CryptoPotato is the information of the credited authors. It does not represent CryptoPotato’s opinions on whether to buy, sell or hold investments. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.

TradingView Cryptocurrency Charts.



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