An awkward diagonal – The Bitcoin (BTC) price is entitled to a rising wick that stops at a few tens of dollars close to a symbolic level. Cryptocurrency price may rely on major support historically, but its rise is complicated by a strong resistance line on a weekly basis.
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The price of Bitcoin at a bottom
The price of bitcoin close to $20,000 on Bitfinex today, October 14, 2022, without managing to cross them. The cryptocurrency is trading at $19,220 at the time of writing. Its price is currently recording a daily loss of 0.78%.
While the attempt to retake $20,000 fails for the moment, the founder of the trading company Eight, Michael van de Poppe, shared a Bitcoin price chart on a weekly basis. This shows that the price of the cryptocurrency could be at “ one of the best places to be long on the asset, historically”.
Referring to the chart, Michaël van de Poppe underlines the fact that Bitcoin held the 300-week moving average, like a “support in previous down cycles”. The cryptocurrency tested this average in 2014, then in 2020, “and now we land on it again”.
Major Resistance and Volatility Ahead
the trader Rekt Capital also shared his Bitcoin price insights on a weekly basis. He published a graph, which shows a diagonal bearish resistance over several months. The price of cryptocurrency would again challenge this obstacle, with the “recent rebound” of Bitcoin.
Previous attempts have resulted in “rising wicks beyond resistances”. Nevertheless, the chart shows that Bitcoin has failed to achieve a weekly close above it for several months. Should this close above this resistance occur, Bitcoin would then confirm “resistance breach”.
Rekt Capital also shared a chart that shows Bitcoin price is trading in a triangle pattern, with price compression between diagonal downside resistance and horizontal support above $18,640.
Bitcoin price is approaching a top of this triangle. Rekt Capital clarifies that “price compression precedes volatility”. Should the markets then expect soon to bigger ups or bigger downs overall, on a weekly basis?
The counterattack post-release of the Consumer Price Index data continues, but it lacks strength, for the price of Bitcoin to break through the resistances preventing it from rallying above $20,000.
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