As Bitcoin continues to struggle with the $18K support level, it has not made a significant move. A bearish breakout below the $18K support level could prove disastrous.
The Daily Chart
The price of Bitcoin overlaps with key support on the daily timeline, as it oscillates within a tight range between the significant trendline and $18K support level. A breakout to one side or the other is possible within the next few days, or even hours.
The 50-day moving mean, located at the $20K mark, is providing additional dynamic resistance. It continues to keep the price below this level.
A bearish breakout below $18K seems more likely considering the bearish market structure and confluence resistance levels at $20K. This could lead to a further decline towards the $15K level and beyond.
Contrary to this scenario, in order for the bearish outlook not to fail, it is necessary that the price breaks above the bearish trendline as well as the 50- and 100-day moving mean lines.
The bullish rebound could lead to a rally towards the $24K resistance in the near term.
The 4-Hour Chart
The price ranges between $20K and $18K on the 4-hour timeframe. This is because the market seems to be in calm before the storm. The market could see a major move above or below these levels, which could impact the mid-term price action for the crypto asset.
The RSI currently stands at around 50%. This indicates that momentum is still neutral for the moment. This suggests that the equilibrium between buy and sell is fragile.
The oscillator recently broke below 50%, which indicates a possible bearish shift of momentum, and further increasing the likelihood for a bearish continuation.
After a dramatic drop in bitcoin prices towards $18K, miners have begun to distribute small amounts of their bitcoins. The hash rate has seen a slight rally and recently spiked to an all-time high.
Bitcoin’s value is now down 74% from November 2021. While mining may not be profitable for many miners or mining pools, the increase in hash rates could be an indicator of their belief in Bitcoin and provide security.
The cessation or end of bear markets has been marked by miners’ surrender. This price level is high enough to suggest that Bitcoin will soon find its long-term bottom.
The post Bitcoin Price Analysis – Sideways Action Continues, Breakout Could Lead to Huge Move appeared first at CryptoPotato.
Marla Brooks – Financial Analysis
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