BTC Hanging By a Thread but is $17K in Play? (Bitcoin Price Analysis)

It’s been over 9 months since Bitcoin’s all-time high at $69K in November 2021. The cryptocurrency continues its gruesome downtrend and has yet to show any signs of recovery. The market is currently quiet, but next week’s price action could be key to determining the mid-term future.

Technical Analysis

By: Edris

The Daily Chart

Looking at the daily chart, the price has been consolidating in a tight range between $19,500 and $20,500 over the past few days, showing little intent for a significant move in any direction. The $20K support area seems to be holding the price for now.

If a bullish rebound is to happen, the 50-day and 100-day moving average lines around $23K and the $24K resistance level would be key areas to watch for as they can initiate a bearish continuation.

On the other hand, a breakdown from the $17K-$20K area could prove disastrous for the market, as, in this case, a rapid decline towards $15K and beyond would be probable. This would prolong the bear market significantly as bottom formation and accumulations take months at the end stage of bear markets.

Source: TradingView

The 4-Hour Chart

On the 4-hour timeframe, the price is oscillating in a symmetrical triangle pattern after breaking below the large bearish flag and falling under the $21K level. A retest of the $21K level could be anticipated in the short-term as the price has already been rejected from the $20K support area several times.

However, it would not be likely for the market to break above the $21K level as the current price action is suggesting a consolidation before a further bearish continuation below the $20K support level.

The RSI is also near the 50% level after printing a bullish divergence a few days ago, suggesting that neither the bulls nor the bears are in full control, and the momentum is presently neutral.

Source: TradingView

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