Strong bearish momentum close to support at USD 23,500 is underway, but there might be a respite in the short term. The price is around relevant support but might drop further before visiting the 200-week SMA.
The price of Bitcoin (BTC) continues to drop as uncertainty and fear spread in the overall markets. The current weekly forecast might seem slightly bearish for those hoping for quick gains. However, others could view it as a generational opportunity to accumulate wealth.
Bitcoin is trading at around USD 22,544 and has accumulated a USD 28.1% loss over the last week. While its daily trading volume is above USD 54,12 billion, its market capitalization is about 428,69 billion, according to CoinGecko.
The new wave of sales occurs amid a sharp collapse in the stock market, as the fear sentiment injects the weakness of the macroeconomic environment.
The US Consumer Price Index reached a 40-year high, indicating that inflation had a year-on-year increase to 8.6%.
The Weekly Forecast of the Price of Bitcoin
This time the price of BTC continues to search for the bottom, with a lot of volatility. It does not seem a good idea to wait for the lowest price to enter despite the possibility of further sales.
Analyst PlanB believes that retailers are not buying due to greed and fear as the price hovered around USD 60,000. The cryptocurrency analyst says investors should not expect it to reach absolute bottoms and focus on a strategy.
The daily chart suggests considerable bearish momentum close to support at USD 23,500. There might be a respite soon before investors expect further sales.
There could be further declines if the price did not reach increasingly high lows on the daily chart.
However, the selling space may be running out, as the current correction from the all-time high is significant.
The macro-environment has never been better for the pioneering cryptocurrency, which remains scarcer and safer. In contrast, the global economy is getting weaker year after year.
The Price is Close to the 200-Week SMA
Will Clemente is another cryptocurrency analyst who agrees this is an excellent opportunity to buy fear. He sees it as a chance for multi-generational success.
Clemente says the price is close to the 200-week simple moving average (SMA). That indicator has frequently worked as support while searching for bottoms in bearish markets.
According to the weekly chart, the price is approaching relevant support, but there might be further drops to visit the 200-week SMA. If it broke through those supports, the ground would be clear for the low of around USD 19,000, which is very unlikely.
Bitcoin plays a significant role in the economy, which many cryptocurrency analysts do not overlook. Despite the decline in its price, the crypto asset has proved to be able to recover from its worst crises. It is only a matter of time before it resumes and exceeds its previous all-time highs.
By Alexander Salazar
