Bitcoin Facing Critical Support: Breakdown or Rebound to $22K? (BTC Price Analysis)

Bitcoin’s price is experiencing a mid-term consolidation phase. The price has dropped and now will be facing a significant level of support at $19K, and this level is the most critical support for the bulls to hold over the next short term.

Technical Analysis

By Shayan

The Daily Chart

After experiencing a particularly rough decline of approximately 10%, the price of BTC has entered a consolidation phase, consisting of choppy price action. The $19K support level has substantially supported Bitcoin’s price over the past few months. Hence, a sharp decline is anticipated if this level gets broken down.

Nevertheless, the 50-day and the 100-day moving average lines are close to marking a bearish cross, which could intensify the bearish rally.

The 4-Hour Chart

In the short term, the apparent bullish divergence between the price and the RSI indicator indicates a possible rebound for Bitcoin in the upcoming days. The price must first penetrate the descending trend line (marked yellow).

Considering the mentioned divergence and the strength of the $19K support level, there is an opportunity for a rebound in the short term. A correction towards the $22K level could take place before the next significant drop to attack the $18K threshold again.

On-chain Analysis

By: Edris

Bitcoin Exchange Whale Ratio

Bitcoin whales have a significant influence on BTC’s price action. This results from the fact that whales hold large amounts of capital, which can be used to move and manipulate the market. The exchange whale ratio metric demonstrates the ratio of deposits being made by whales to the whole amount of deposits in a day.

According to the chart, it is evident that the whales tend to distribute their coins during the first stages of a bear market, as there are willing and impatient dip-buyers to take Bitcoin off their hands before a final capitulation.

After the capitulation mentioned above, the same investors who bought their coins at higher prices from the whales come under heavy psychological and financial pressure. From this, they end up selling their cheap coins back to the whales. This cycle is seen on the following chart and marked by red and green arrows.

The Whale Ratio metric is still rising, indicating that the whales are distributing at current prices, signaling another potential drop. Overall, the market still appears far from finding a bottom, and a final capitulation event could be on the horizon.

The post Bitcoin Facing Critical Support: Breakdown or Rebound to $22K? (BTC Price Analysis) appeared first on CryptoPotato.

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