Bearish break or saving retreat? Bitcoin (BTC) price forays below $19,000. Is this yet another sign of weakness, or a local low needed to give the bulls the momentum they need to reclaim $20,000?
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Bitcoin Price Below $19,000: Heading North or South?
The price of bitcoin drops to $18,318 on Bitfinex today, September 19, 2022. However, the cryptocurrency manages to rally back to $19,000, and is trading at $19,575 at the time of writing. Its price is currently registering a daily gain of 0.77%.
Does this fall below $19,000 announce an upcoming return to $20,000, just like when Bitcoin revisited the $18,000-$19,000 area on September 6, before starting a strong bullish rebound? afterwards ? Or is a close below $19,000 necessary to replicate this pattern?
In terms of magnitude, the decline was larger this time around from last visiting the levels below $19,000, with a drop to around $18,300 today, against a return to the low 18,500s. $ – $18,700, last September 6 and 7.
Bitcoin starts the week with this exceptional low, when it should yet to face the FOMC meeting from the US Federal Reserve in two days. The trader Michaël van de Poppe remember that the “general consensus” is for a 100 basis point hike, with continued hikes in the months to come.
Breaking of essential support for the price of Bitcoin
The price of Bitcoin therefore begins the week with a drop below $19,000, which may herald an upcoming bullish rebound, or other larger declines to come, with a rather favorable macro event for the bears.
This technical analysis will not reassure traders and analysts who would have preferred to see greens in the coming days. Trader Rekt Capital has shared a weekly Bitcoin price chart that shows the cryptocurrency has closed last week under a Higher Low over several months – in black in the graph.
Bitcoin could therefore be preparing “potentially for a breakout from it”, a diagram bearish which could materialize especially if this level turns into a new resistance “to confirm the breakout” bearish.
Is the king of cryptos close to a knockout or can the markets hope for a rebound that would relieve traders’ wallets in the very short term? The factors seem to be working in favor of the bears, with little hope for the bulls based on the recent swings in the price of Bitcoin.
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