Bitcoin has seen a sharp decline over the last month with significant bearish momentum. This was actually the worst quarter ever for Bitcoin.
The bearish momentum is beginning to recede with price volatility and consolidation. However, BTC has fallen below the 2017 all time high of $20K. Can BTC finally start to see some green after another week of red-candle?
Shayan conducts technical and on-chain analyses
The Daily Chart
Despite the fact that the price fell by nearly 74% since November 2021’s ATH, which was recorded in accordance with many price models, there is still no sign of a trend reversal.
This, along with the increased negative sentiment and low demand, raises the chances of another bearish leg that leads to the collapse of the $17K critical level. This is the bear market’s lowest point. This will most likely cause the price to drop below the $17K support level and push it towards the $15K mark.
The 4-Hour Chart
Over the past few days, Bitcoin’s price has been supported by $18K. However, the price has not been able to break the channel’s middle border and there is no sign of a reversal pattern in the charts for the lower time frames.
Markets often form a correction pattern after an expansion move. Bitcoin is now forming a triangular correction pattern as it did in May’s second half, when the price was consolidating at above $28K. Two scenarios are possible going forward:
Bullish: The price breaks the channel’s middle-trendline and the upper boundary of the triangle and attempts to break $22K sentimental resistance.
The breakout of the triangle will determine Bitcoin’s next move.
The Whale Ratio metric provides a proxy for big players’ selling behaviour. It is calculated by subtracting the top 10 bitcoin inflows from exchanges by all daily inflows. High values of the whale ratio metric have historically led to extreme price volatility.
The Whale Ratio spiked several times since Bitcoin failed to break $48K (a clear bull trap) and began falling towards the area of the 2017 ATH. This has been a catalyst for the bearish trend. This situation leads to the conclusion that whales are rapidly depositing BTC into exchanges, increasing selling pressure.
Bitcoin will most likely reach a bottom when the big players give up and take huge losses.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.