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Investing.com – Although the managed to recover above the $19,000 mark, the positive momentum does not seem sufficient to test the psychological threshold of $20,000.
All in all, it even looks like the market is facing further big losses. So far, the price is supported by the fact that many market participants are convinced that the cryptocurrency will reach new all-time highs in the long term. An opinion that the whales do not seem to follow, since 90% of BTC inflows on cryptocurrency exchanges in the last ten days came from large wallets.
If the broad mass of crypto enthusiasts lose faith in new all-time highs, new cycle lows are likely to emerge, well below the current $17,630 level.
Naeem Aslam, analyst at AveTrade, told Barrons:
“Everything indicates that a massive wave of capitulation is imminent. The next move will not be around the price level of $18,000 or $15,000. The selling could be so intense that it could easily push prices towards the $12,000 mark. “.
Bloomberg analyst Mike McGlone, however, remains convinced that bitcoin is something of a wildcard. If stock markets bottom out under the Fed’s monetary policy tightening, bitcoin will rally more than average. Some leading economists estimate that the end of the tightening of monetary policy will already have arrived by next year.
Bitcoin: Important technical thresholds
Bitcoin is currently posting a price gain of +1.86 percent to a price of $19,151, while on a weekly basis it is showing a loss of -3.71 percent.
Yesterday’s daily candle is a short-term silver lining, as although a new low was formed, the day was able to end on a gain. The closing price was in the area of the 78.6 percent Fibo retracement of $19,251. A level that offers immediate resistance to BTC/USD.
As long as bitcoin is trading below this level, expect a test of the cycle low of $17,630.
Only if the cryptocurrency manages to sustainably break above the 78.6 percent Fibo retracement can one aim for the psychological threshold of $20,000 and the 61.8 percent Fibo retracement of $20,523.
By Marco Oehrl