The overall cryptocurrency market tumbles as recession concerns rise again. BTC is trading significantly weaker in today’s trading, hitting as low as $20,910 as the demand for digital assets fell sharply. Investor risk appetite is decreasing after a substantial rise that returned the global crypto market to over $1 trillion in value since mid-June, as indicated in particular by a dramatically stronger USD. After Bitcoin hit the long-term downtrend’s bottom at the $17,588 level in 2022, BTC/USD has steadily risen. However, after its recent rally failed to cross above the $25,200 region, the No. 1 crypto has been undergoing a negative correction during the past few daily sessions. At the time of analysis, BTC/USD is in a sell position while trading at $21,022 from a daily high of $23,206. As per on-chain data from Glassnode, Bitcoin prices have broken back below the realized price after 23 consecutive days above the market cost basis. The realized price currently sits at $21,700, reflecting the aggregate acquisition price, valued at the time coins last moved on-chain. The BTC price has fallen below the $21,700 zone and can now be considered to be at an aggregate loss.
Key Levels
Resistance Levels: $28,000, $25,000, $22,000
Support levels: $20,000, $17,000, $15,000
BTC/USD Daily ChartOn a daily basis, BTC/USD appears fragile, and consolidation below $22,000 could pave the way for additional losses. Deviation from values over the moving average (MA 50), the upper limit of a broad range, could accelerate. The close below the daily low price of $20,910 might hit $20,000.
Following the collapse, BTC/USD might encounter a relative immediate floor in the $19,500 price range, where it experienced extended consolidation in mid-July. Any further move beyond the previously stated zone area exposes the pair to year-on-year lows ranging from the $19,000-$17,000 range.
BTC/USD 4-Hour ChartFollowing today’s decline, the BTC/USD intraday bias has shifted to bearish. Some sideways trade is conceivable, but more gains are also possible as long as the $20,000 support level is held. A break of the $25,000 level, on the other hand, may trigger a greater rebound to $28,000 from the $22,000 level.
The present 4-hour chart highs beneath the $22,000 level, on the other hand, appear to be acting as immediate resistance. It is followed by last week’s swing high above $25,000, which, if convincingly cleared, may set the ground for further short-term appreciation. The price could then break through $25,000 and aim for the next significant obstacle at the $28,000 congestion zone.
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