Bitcoin would be heading for a fifth week with no relief around USD 20,000, but the bulls consider breaking above that level very valuable. Since the bears would not give up easily, it is necessary to work to return to the right side of the barrier.
While cryptocurrency prices have remained almost unchanged, Bitcoin (BTC) has struggled around USD 20,000 despite a positive week in stock indexes. Since the Fed tightening has made it vulnerable to illiquidity, its bearish streak since its last all-time high is not over. However, investors have struggled to keep it afloat, although it is at its lowest level of the year.
Amid an uncertain market, there might have been volatile price movements, but the opposite has happened. The bulls and the bears still wait for the outcome of this tight order around the 2017 all-time high. The former would like this bearish market to end, while the latter would like it to expand with a view to a capitulation.
The Bearish Market Affects Bitcoin in Terms of Weekly Units
The price of Bitcoin would be heading for a fifth week with no relief at around USD 20,000. However, that might change as the descending line of the bearish run has influenced prices. Of course, the bulls view the idea of breaking above that level as very valuable.
The bears would not give up easily, as they have solid arguments in weekly units. First, the prices of BTC and the Chikou Span are still below the Kumo (Ichimoku Cloud). Therefore, it is necessary to work to return to the right side of the barrier.
Second, the Tenkan and Kijun synchronization would discourage finding cause for hope amid a bearish run. Third, the sheer thickness of future Kumo might hinder an advantageous reversal in the trend. Bitcoin has recently traded below the 200-week long-term moving average (MA).
A pullback to USD 20,000 might lead the pioneering cryptocurrency to break above Tenkan. The objective would be that prices return near the 200-weekly MA, close to the USD 26,000 resistance. There might be a double-bottom formation, but the USD 20,000 breakout would upset many investors as it would reignite further declines.
Bitcoin Cannot Break above the Kumo in Terms of Daily Units
Bitcoin has been unable to cross the Kumo in terms of daily units for six months, signaling that sellers’ fate is mostly in its hands. In addition, prices are teetering below the Tenkan and Kijun, so allowing a further bounce would avoid the threat below USD 20,000.
However, the last candlesticks since mid-September do not help predict where the price will head next. That indicates that the pioneering cryptocurrency is moving slowly, while forecasts remain open with intermediate heights.
If prices do not break out of the Ichimoku cloud quickly, Bitcoin might risk sinking below USD 20,000. Meanwhile, the bears would target USD 16,000 at the USD 12,000 level, but the confirmation of the decline would allow recovering USD 22,000. However, Bitcoin would have to understand that it has not been able to rise above the cloud for a long time.
The sluggishness of Bitcoin around its 2017 all-time high for a while might have many interpretations. There is nothing for the bulls to eat, while the bears are not in a hurry since they have accumulated gains. However, it is a matter of time before seeing where the market will take the price of the pioneering cryptocurrency.
By Alexander Salazar
