The price of Bitcoin (BTC) has stalled under the $17,000 mark, dropping for the third consecutive day since Nov. 10. At the time of publication, BTC was changing hands at $16,389—down 3% in the last 24 hours. A bearish death cross pattern is seen on the Bitcoin 4-hour chart leading up to the price declines. The Bitcoin death cross is a chart pattern formed whenever the 50-day moving average crosses over and below the 200-day moving average, signaling a long-term downward swing in price momentum. Despite the bearishness portrayed by the Bitcoin price action, there are still a few bullish indications. According to Glassnode, the Bitcoin Number of New Addresses just reached a 17-month high of 19,282.893. The number of active addresses just reached a 5-month high of 56,961.339. The previous 5-month high of 56,902,607 was observed on November 11, 2022. BTC investors are withdrawing funds from exchanges at a rate not seen since April 2021. Three billion dollars’ worth of Bitcoin has left exchanges in the past week amid the FTX fallout contagion.
Key Levels
Resistance Levels: $22,000, $20,000, $18,000
Support Levels: $16,000, $14,000, $12,000
BTC/USD Daily ChartBitcoin has seen a retreat following its most recent rebound to $18,140; it is currently trading back down at $16,389. On the BTC/USD market’s daily chart, the trend is indicated by the spot price relative to the MA 50. The price of BTC breached the $19,500 primary support level of the MA 50 on November 8th, and this level will now serve as a barrier/resistance.
The price managed to gain some ground after falling to a low of $15,512, but as it crossed the $18,000 mark, the chance of a rebound diminished. BTC is struggling to maintain stability after attempts to reach the daily MA 50 failed, which is currently near $19,500 with a rise in bearish market sentiment. The pattern might continue as long as prices stay below the MA 50.
BTC/USD 4-Hour ChartBitcoin continues to be exposed to more losses as long as the BTC/USD pair continues to trade below the critical $18,380 level of the 4-hour moving average (MA 50). The lower time frame’s bearish RSI price also signals a more pronounced decline under the $18 level. Bulls need to keep the BTC/USD pair above the $18,000 level to stand against further selling beneath the critical $16,000 level.
The bullish trend may have ended and the price is ready to return to the range that ruled in the year 2020, according to a steady step below this area. More important is a bearish death cross pattern seen on the Bitcoin 4-hour chart leading up to the price declines. The BTC/USD pair is only bullish when trading over the $20,000 level; as noted, the primary resistance levels are between $18,000 and $19,500. Sellers may test lower levels if the BTC pair trades for less than $16,000.
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