Previous week was a second tightest week for BTC and crypto market after a drop of 17% in value within a single week. First hard week occurred during May 2021. However, the difference between these two moves is that the latest one was sort of expected. Levels of $30K were emerging on charts as a major support line where BTC was headed. But, what is emerging from fundamentals is a question if this level is the actual end of market correction? Namely, FED is determined to withdraw excess liquidity from the market in order to fight inflation, in which sense, future price of the BTC is pegged to future FED moves, which, on the other hand, would depend on future inflation figures. Following this logic, a question is emerging, if current levels of BTC are actual end of moves to the downside, or can we expect further drop in price of BTC in the coming period? The BTC futures market does not show much optimism for the price of BTC till the end of the next year, but certainly, it is still too early in time to draw conclusions.
BTC started the previous week with a push of prices to the downside from the $35K resistance line. End of this move was finished at $25.3K which was the lowest level reached during the week. After this level, BTC modestly rebound supported with dip buyers, which pushed price to the level of the current resistance line at $30K. Still, the coin is ending week modestly below this level. RSI clearly reached the oversold market, but continues to move within this range. Moving averages of 50 and 200 days continue to move as two parallel lines, but now with a clear down trend. There is still no indication of a potential golden cross in the coming period.
After strong price moves to the downside, during the following days it could be expected that BTC will search to calm around new levels. Dip buyers emerged on the market during the last two trading days, however, they were not able to push prices above $30K resistance. In case that more buying orders occur in the coming days, it might be expected that the price of BTC will return at least to $33K levels, with lower probability that next resistance at $35K might be tested. On the opposite side, if selling orders continue to be prevalent on the market, the price of BTC might turn back to the $25K support line.
BTCUSD
BTC started the previous week with a push of prices to the downside from the $35K resistance line. End of this move was finished at $25.3K which was the lowest level reached during the week. After this level, BTC modestly rebound supported with dip buyers, which pushed price to the level of the current resistance line at $30K. Still, the coin is ending week modestly below this level. RSI clearly reached the oversold market, but continues to move within this range. Moving averages of 50 and 200 days continue to move as two parallel lines, but now with a clear down trend. There is still no indication of a potential golden cross in the coming period.
After strong price moves to the downside, during the following days it could be expected that BTC will search to calm around new levels. Dip buyers emerged on the market during the last two trading days, however, they were not able to push prices above $30K resistance. In case that more buying orders occur in the coming days, it might be expected that the price of BTC will return at least to $33K levels, with lower probability that next resistance at $35K might be tested. On the opposite side, if selling orders continue to be prevalent on the market, the price of BTC might turn back to the $25K support line.
BTCUSD
