Bitcoin looks poised to close below the critical $20,000 support or 2017 ATH, although November is not over yet.
Beware of the black flag over the king of crypto! – It is useless to remind you how much ink the FTX issue has spread in the financial world. To the point that unfortunately it generates disastrous publicity against cryptocurrencies.
If in the near future, what has happened to FTX could hurt Bitcoin, although there are some who remain firmly convinced that it will grow in the long term. At the moment, there is still talk of its bearish run since the last ATH in November 2021, with the bulls finding themselves in a difficult position.
Bitcoin in Monthly Units: November below $20,000?
Although November isn’t over yet, Bitcoin seems poised to close below the critical $20,000 support or 2017 ATH.
Firstly, prices would risk falling below the Kumo (cloud) in the coming months. Given the scale of FTX’s business, a spectacular reassembly would seem like an impossible mission.
Second, Chikou Span, while above the cloud, would probably be below BTC prices.
Lately, the unfavorable reversal of the future Kumo, via a bearish cross between the Senkou Span A (SSA) and the Senkou Span B (SSB), is a matter of concern. The bear market for the crypto king may continue to stall in the first half of 2023.
Bitcoin in Weekly Units – The Hangover
Bitcoin prices fell sharply below $20,000, while the Chikou Span, which lags behind price movements, is now below the 2017 ATH.
Despite the new lows for the year, it may be tempting to assume that this has no real relationship to the BTC Price Status Quo and Chikou Span below Kumo. However, the bulls would feel the specter of a third wave of correction, as well as the widening of the Kumo thickness after last week’s fall, would not advocate a definitive truce in the bearish run.
Bitcoin in Daily Units: Unfavorable Polarity Shift Around $20,000
As luck does not smile on the bulls, they would take a dim view of the unfavorable polarity reversal around $20,000, that is, the move from support to resistance according to the daily chart. Especially since this simultaneously coincides with Bitcoin prices and a Chikou Span below the Kumo. Worse still, the break of $20,000 could definitely line up on weekly units by the end of the weekend.
As long as the king of cryptocurrencies remains at the mercy of a difficult-to-understand market context, it will have a hard time profiting from bad news.
This is precisely because the lack of liquidity – a consequence of the restrictive monetary policies of the central banks – does not favor upturns likely to maintain positive momentum. In any case, Bitcoin could be headed for a third wave of correction.
By Audy Castaneda
