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The Bitcoin weekly chart shows the price is well supported at the $19000-$18800 demand zone. Last week the coin price rebounded from this support with a morning star candle pattern showing a possibility of forming a double bottom pattern.
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Key points
- The Bitcoin price could retest the $20500 level as potential resistance before falling to $18800
- The weekly chart shows an evident bullish divergence in the RSI chart
- The intraday trading volume in Bitcoin is $24.9 Billion, indicating a 14.5% loss
Source-Tradingview
The aforementioned reversal pattern can replenish the bullish momentum and trigger a new recovery rally. A bullish breakout from the $25000 neckline could provide a bull run to the $31700.
However, the recent CPI data released impacted the Bitcoin market value negatively. Thus, prices will likely retest the buyer’s commitment at the $19000-$18800 support.
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Anyhow, if the Bitcoin price sustains above this support, the bullish pattern will remain intact, and so does the recovery theory.
Willy Woo Hints Bitcoin Market Value has not Bottomed Yet
Renowned On-chain analyst Willy Woo recently posted a series of tweets, sharing why the bitcoin value has not yet bottomed. One of the indicators we are likely to highlight is the ‘Cost Basis Density Map.’
In this chart, the Blue line represents the percentage of losses the coin witnessed. Thus, Analyst Willy woo said, “In terms of max pain, the market has not felt the same pain as prior bottoms.”
The tweet accentuated that currently, only 52% of coins are underwater. However, the prior bottoms were 61%, 64%, and 57%.
Thus, if the selling pressure persists and breaches the $18800 support, the next crucial support zone would be at $12250.
Technical indicator
EMAs: the weekly EMAs bolster the resumption of the prior downtrend with the bearish crossover of 50 and 100 EMAs and the potential crossover of 20 and 200 EMAS.
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Relative strength index: A bullish divergence in daily-RSI indicates strength in bullish momentum. Thus, the rising indicator slope hints at a price reversal or extended consolidation above the $19000-$18000 support.
- Resistance level- $22550 and $25000
- Support level- $19600 and $19000-$18000
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
