The short-term bias is bullish, but the price must break above resistance at USD 17,556 to confirm a broader rebound. Bitcoin might resume its previous trend if it lost its USD 16,463 support, but it must first exceed its USD 21,300 resistance.
Traders still defend support around USD 16,800, but the lack of buying determination suggests the bears will continue dominating.
Bitcoin is trading at around USD 16,926 and has accumulated a 1.6% loss over the last 24 hours. While its daily trading volume is above USD 19,17 billion, its market capitalization is about USD 325.59 billion, according to CoinGecko.
Although the price action is encouraging, the little strength from the bulls does not confirm a broader recovery.
The Daily Technical Analysis of the Price of Bitcoin
A Shoulder-Head-Shoulder pattern announced a short-term trend reversal, but the intention may only be a small respite before dropping again.
Looking a little to the left on the chart, it is evident that the dominant force remains bearish.
Increasingly high lows have allowed the very short-term bias to be bullish right. However, it is impossible to confirm a broader rebound if the price does not break above resistance at USD 17,556.
If Bitcoin lost the immediate support at USD 16,877, the slight bullish intention created over the last few weeks would end. Therefore, the ground would be clear for USD 15,900.
Furthermore, it will be logical to think of new yearly lows for the price of Bitcoin if traders decide to sell.
The Weekly Chart Analysis of the Price of Bitcoin
The weekly chart shows that a bullish trend remains unquestionably in force.
However, a significant bearish divergence formed between the price chart and the RSI after Bitcoin sought the new yearly low of USD 15,480. That indicates an oversold area and few possibilities for the bears to drive Bitcoin lower.
Since that has not prevented buyers from failing to show weakness, there may be new lows in the short term. What is true is that those signals indicate that the price of Bitcoin is about to bottom out.
The price of Bitcoin might resume its previous trend if it loses its support at USD 16,463. However, it must exceed the resistance at USD 21,300 to consider a significant rebound or a trend change.
The On-Chain Analysis of the Price of Bitcoin
According to on-chain data, the leading Bitcoin holders or Whales have not started to hoard coins. The UTXO Value Bands (between 1,000 and 10,000 BTC) reveal that a bullish trend in the price usually implies accumulation.
However, the holdings of the whales have dropped by 367,000 BTC since June 2022. Therefore, the market should experience significant accumulation from those players to support a price increase.
Regarding spending, the high level of whale distribution opposes a signal that might lead to changing the market cycle. Besides, a considerable amount of the BTC spent (up to 80% of the total) came from whale addresses.
Investors should investigate Bitcoin before buying it to learn about its all-time high, behavior, and possible future prices. That will allow them to make better investment decisions and reduce the risk of losing money.
By Alexander Salazar
