The bear run of the king of crypto remains relevant.
While the coming week promises to be lively in terms of macroeconomic events, culminating in the FED meeting next Wednesday, the Bitcoin (BTC) price continues its momentum from the start of 2023. The troubles on the bear side could start. That being said, it is advisable not to jump to conclusions until there are some major catalysts that the bulls can hold on to for a long time.
Even if the current momentum encourages a rather upside look, the crypto king’s bear run is still relevant, despite graphical signals going in the direction of the bulls. This is so, especially since the reasons for its rebound are essentially based on hopes of a return to normal inflation and the reduction of fears of a severe recession.
In a market context in which the good news outweighs the bad, the latest technical analysis of BTC is reached.
Bitcoin in Weekly Units – Towards the Pass of Four?
Bitcoin would be on the verge of a fourth consecutive week of gains. This would make it possible to calmly validate the crossing of courses beyond the Kijun. At the same time, the Chikou Span approaches the Tenkan, but still has work to do to pass the downline of the bear race.
Assuming the bounce continues, Bitcoin would potentially reach $26,000, then sit near the lower limit of the Kumo (Ichimoku Cloud), the Senkou Span A (SSA). On the other hand, if a consolidation occurs, the ATH of 2017 will be scrutinized. Whether or not this is held will reveal more about the structure of the ongoing rebound.
Bitcoin in Daily Units – Price Above $22,000
In daily units, the price of Bitcoin has managed to break from $22,000, an intermediate level between $20,000 and $26,000. On the other hand, it moves away favorably from the Kumo in the same way as the Chikou Span.
In any case, the probability of a relapse into the alert zone does not seem to be on the agenda in the short term. This would allow the bulls to move towards $26,000. If this market scenario were to gain credibility, the question will be whether or not it is advisable to go through a consolidation phase or not.
If so, the groundwork for a structurally robust rebound would eventually be laid. In this sense, it will be interesting to follow the $22,000 and $20,000 levels, to test their recent changes in polarity, from resistance to support. Conversely, the series of consecutive rising weekly candles could continue to the point of initiating panic on the bear side.
Finally, the possibility of a questioning of this bullish scenario would occur from the breakout of $20,000, in which case there is a risk of returning towards the levels seen at the end of last year, not far from $16,000.
By Audy Castaneda
